German cost-of-living fears rise to 59% as 2026 annual study shows broad economic anxiety

Inflation and living costs top national anxieties

Rising living expenses represent the foremost fear among German citizens for the fifth consecutive year, according to the 35th annual study published by R+V Versicherung. The survey found that 59% of respondents harbor substantial anxiety that their income will fail to meet their ongoing daily needs, marking a seven percentage point increase from 52% recorded in 2025. This cost-of-living concern has now captured the top position in 16 of the 35 annual surveys conducted since 1992. Concerns are distributed unevenly across the country, with 60% of residents in western Germany reporting fear of rising expenses compared to 53% in eastern federal states. Female respondents also reported higher levels of financial apprehension than male participants. Study director Grischa Brower-Rabinowitsch explained the primary driver during the presentation in Berlin.

People feel every day how expensive everyday life has become. In total, 59 percent of the population fear that their money will not be enough to live on in the long term.

Economic outlook and social security concerns

Financial worries dominate the upper ranks of the study, occupying four of the five most acute fears measured in 2026. The second most common apprehension is the prospect of tax increases and cuts to state social benefits, cited by 53% of participants compared to 49% in 2025. Broad economic deterioration registered the fastest growth across all surveyed issues, climbing ten percentage points from 41% to 51% and rising from tenth to fourth place. Exactly half of all respondents expressed fear that housing is turning completely unaffordable. Political scientist Isabelle Borucki from the Philipps University of Marburg noted that key prices for energy, shelter, and groceries have created persistent financial pressure, leading households to rethink and postpone larger acquisitions such as cars and homes.

Behind the fear of tax increases and benefit cuts is the question of fairness: who will have to pay for the reforms, and will people continue to be able to rely on the benefits promised by the state?

Political discontent and migration pressure

Public confidence in political institutions weakened across both governing and opposition forces. More than half of respondents gave the current federal government and parliamentary opposition failing or poor grades of four, five, or six on the German academic scale, generating the worst average evaluation recorded since 2018. Chancellor Friedrich Merz received the lowest individual score given to any federal chancellor in the history of the survey. Beyond direct economic worries, 52% of participants fear that the German state is overwhelmed by the intake of refugees, making it the third largest concern overall. Additionally, 47% voiced worry over societal friction resulting from foreign immigration, despite recent declines in total border arrivals.

Survey methodology and psychological uncertainty

The investigation was conducted through personal, face-to-face interviews with approximately 2,400 German-speaking residents aged 14 and older between 11 May and 29 July 2026. Participants rated potential threats on a scale from one to seven, with ratings of five, six, and seven categorized as acute fear. While 51% fear macroeconomic decline, only 20% of employed respondents fear losing their own jobs, indicating a sharp divergence between personal employment stability and collective economic expectations. Business psychologist Burkhard Schmidt from the Ludwigshafen University of Business and Society explained that general unpredictability intensifies public anxiety even when personal circumstances remain functional.

People simply no longer know what will become more expensive next. And they no longer know what they can rely on.