The willingness of Germans to leave an inheritance to their descendants has changed significantly in recent years. Today, only 35 percent of those surveyed want to ensure they can pass something on – a marked decline compared to 2017, when almost half of Germans (49 percent) expressed this desire. Instead, there has been a shift in priorities: 28 percent want to consciously enjoy their retirement, while 62 percent say they want to live “quite normally” without saving up for a large inheritance. Only a small group of seven percent is prepared to accept financial constraints in order to save as much as possible for the next generation.
Another factor influencing inheritances in Germany is inheritance tax. Around two-thirds of those surveyed perceive this tax as unfair – a figure that is particularly striking among women, with only 23 percent agreeing that the tax is fair. Men, on the other hand, view inheritance tax somewhat more positively, with an approval rating of 35 percent.
Although inheritance tax represents a burden for many, in practice the tax-free allowances are sufficient for most heirs. Three-quarters of those who have already inherited did not have to pay any inheritance tax. Only 18 percent of respondents stated that they were burdened with taxes in this context. The high tax-free allowances and the adjustment to the deceased’s financial circumstances contribute to the fact that only a small proportion of inheritances are actually taxed.
These developments shed new light on the priorities of Germans regarding their wealth and estate planning. These changing attitudes could also influence the long-term societal debate on inheritance, intergenerational contracts, and financial security in old age.
