Looking at this year’s survey results, it’s apparent that one of Germany’s biggest draws is the country’s economic strength and status (an area in which it’s always had a great reputation).
Ranking Germany in seventh place (out of 65) in the Working Abroad Index, the Expat Insider report notes that the country offers workers good career prospects and job security. Almost seven out of ten expats rated their job security favourably, and 52 percent felt that the state of the German economy was very good (far higher than the worldwide average of just 19 percent).
As for income, the majority of respondents were satisfied with their salaries. Over half (54 percent) said they were earning more in Germany than they would be in a similar job role in their native country.
All the above factors will have a positive impact on an individual’s wealth management in Germany and it therefore comes as no surprise that one in eight respondents cited finding work as their reason for relocating.
The glowing feedback regarding the country’s economy is reflected in another recent study that surveyed all Germans, not just expats. The Bertelsmann Foundation recently published a study showing how citizens from the six largest member states, alongside the other 28 states grouped together, felt about their respective country’s progression. The survey’s results (collected from 10,755 respondents living in EU countries in July 2017) showed that 59 percent of Germans were satisfied with Germany’s development and the direction it is taking. This was a significantly higher percentage than the other member states. Furthermore, the personal economic situations of most Germans were reported to be stable, with 34 percent saying that their situation had improved within the previous two years and 43 percent responding that it had remained the same.
But the economy and its impact on workers are not the sole reason for making a move to Germany. Looking back to the Expat Insider Report, we can see that family life is also reflected well. Having sufficient savings to fund their child’s education is likely to be a key concern of any expat, so it’s encouraging news that 32 percent of expat parents in Germany describe the education as affordable – twice the worldwide average of just 16 percent. What’s more, the country also ranked highly in terms of security, suggesting it’s a very safe environment to raise a family; just two percent expressed concerns that they didn’t feel safe in the country.
There was, unfortunately, one slight problem encountered by expats living in Germany: the difficulties surrounding successful integration into the culture. Some respondents complained that it was hard for them to feel at home among the locals, feeling that the country isn’t’ particularly accommodating to expats who do not learn the language – only five percent of the survey’s respondents felt it was easy to settle in without a solid understanding of the language.
Of course, it’s typical to most countries that learning the native tongue will help you settle in, but the problem that many expats agreed about was that learning German is very difficult, with over two-thirds saying that they found it hard. But making an effort to get to grips with even just the basics of the language, perhaps by getting yourself enrolled in a course, will be worthwhile.
Trouble settling into a new country is a common issue faced by many expats, and the adjustment process can be very stressful for many, but there’s plenty you can do besides teaching yourself the language if you ever find yourself struggling. We have some great advice for expats who are struggling to adapt to their new country.
When you’re relocating to Germany, wealth management is always going to be a crucial factor in making sure your transition is successful. Although the country is well known for its strong economy and job security, it is still possible to run into financial difficulty if you’ve not prepared for the future.
There are many considerations to make regarding your personal finances, including tax planning and saving for retirement. While it can be confusing to work out a solid plan on your own, sitting down with an expat financial adviser in Germany to discuss your wealth management options can make everything seem much simpler and put you on the right track to realising your financial goals.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
A SIPP transfer may offer many benefits, including greater investment flexibility and exemption from capital gains and income tax; however, a SIPP is not suitable for every retirement investor and independent expat financial planning advice should always be sought before committing to a SIPP pension transfer.
Many expats earn more abroad than they would at home, have lower tax liability and a range of investment options. However, despite these advantages, some fail to adequately account for one essential aspect of wealth management: