Agency Report –
Frankfurt – Aggregate German household wealth may have reached new highs, but almost a quarter of all households have no savings whatever, according to a survey conducted for ING bank.
The survey of 1,000 households found 23.5% with nothing set aside for the proverbial rainy day. Low income and price rises for everyday necessities were given as the reasons.
The proportion without savings has declined since 2020, when it stood at 30%.
The proportion with savings rose above 70% for the first time to 70.7% of households, according to the most recent survey taken in December.
The ING economists attributed this to precautionary savings in uncertain times, rather than to improved household finances.
More than 70% of those with savings say they are putting money aside for difficult times ahead. Other key reasons for saving were for travel and for major purchases. And some 40% are in a position to survive for a year or more on their savings.
