Majority cannot save
Inflation eats up provisions
10/13/2022 7:27 am
According to a recent survey, more than one in ten has higher expenses than income. With one in four, they only keep the balance, so that there is no more money to save. It doesn’t just affect low earners. Reserves would be helpful right now.
The extremely high inflation is slowing down Germany’s savers. According to a survey, every second person (53.9 percent) is currently putting less money on the high edge or is currently unable to save anything at all because the sharp increase in expenditure, for example for energy, is eating up the household budget. That’s according to a YouGov poll commissioned by Postbank.
According to the first official calculations, consumer prices in September were 10.0 percent above the level of the same month last year. Inflation in Germany thus jumped to its highest level since the early 1950s. According to the survey, almost a quarter of people (24.9 percent) in this country have stopped saving because current income just covers expenses. According to their own statements, more than one in ten (11.1 percent) already have higher expenses to cope with than income is available and can therefore no longer put any money aside.
“The rising prices are such a heavy burden on consumers that every second person has to reduce their savings or stop them altogether. This affects not only those on low incomes, but also those on middle incomes,” summarized Deutsche Bank’s chief investment strategist for private individuals – and corporate customers, Ulrich Stephan, together. “A growing number of savers no longer have funds that they can invest permanently.” Postbank is part of the Deutsche Bank Group.
Tenants would like to set aside something for energy costs
Energy and food have been the biggest price drivers for months. More than a third (34.7 percent) of the 2,058 respondents said they would like to build up financial reserves because of the increased prices for gas, oil and electricity. But this is not possible for them. “Our survey shows that every second tenant of an unrenovated property would like to build up financial reserves for rising energy costs, but is not able to do so,” explained Stephan.
The federal government wants to relieve people with price brakes for electricity and gas. Higher inflation rates reduce the purchasing power of consumers, who can then afford less for one euro. Those who can save now get a little interest again. But because inflation is significantly higher than interest on savings, the value of the money in the account decreases. The clear majority of respondents (68 percent) correctly assess the effects of inflation on savings. However, 7.3 percent believe that inflation increases the value of their savings.