Between galloping inflation, rising interest rates and falling stock market indices, how has the behavior of savers with regard to investments evolved this year? The Financial Markets Authority (AMF) looked into the subject via an annual survey carried out by Audirep among a representative panel of the French population. Here are the three main lessons.
With inflation, have the French managed to save as much this year?
While the proportion of savers who have put money aside at least once over the past twelve months has remained stable compared to 2021 (76%), that of French people who have also dipped into their woolen stockings at least once has climbed eight points, from 51% last year to 58% this year. As for those who have neither saved nor used their invested money, the share remains practically stable at 10%.
The AMF barometer shows a paradoxical behavior: the French have both saved and spent. Only a third of respondents have only invested money, without touching their savings, and a minority (13%) have only withdrawn money from their savings (13%).
A result which clearly illustrates the reality of many households in this period of crisis who are trying as much as possible to continue saving in the face of economic uncertainties (the household confidence indicator noted by the AMF fell by 10 points , at 24%), but with purchasing power reduced by the general rise in prices (inflation caused French households to lose an average of €720 between January 2021 and June 2022, according to INSEE estimates ), more and more people have been forced at one time or another to use their savings, whether to make ends meet, their projects or cover unforeseen expenses.
How do the French view the #investments ? Attachment to savings, declining intentions to#investment in #actionsknowledge of #scams :?? find the results of our barometer#saving ?? https://t.co/j3YwlGchLo pic.twitter.com/80wBlxbo9v — AMF (@AMF_actu), through Twitter
The ability to save regularly also illustrates these difficulties: in general, the proportion of French people who say they save occasionally remains stable compared to 2021 (46%), but only 32% of respondents say they put money aside regularly, compared to 39% last year.
The amounts saved per month are less than €199 in 58% of cases, and from €200 to €499 in 24% of cases. The visibility of savings capacity is also less strong since 9% of respondents have no precise idea of the level of their monthly savings, ie three times more than last year.
Where did the French put their money in 2022?
Favorite investments of the French this year, and by far: the booklets A! 88% of respondents who have put money aside this year have indeed deposited all or part of their savings in their regulated savings accounts. While these very liquid investments with guaranteed capital are pampered when the economic climate is gloomy, they will above all have benefited at full speed from a “rate effect” this year. Boosted by inflation, the rate for livret A and livret de développement durable et solidaire (LDD), which still capped at 0.5% in January 2022, has since quadrupled, rising to 1% in February, then to 2% in August.
Second place in the list of the most used “investments”: current accounts, which the majority of French people use as savings vehicles despite the absence of any remuneration, were used by 50% of respondents who had invested money aside.
This method of using the current account is very widespread among all savers, regardless of their age and the size of their financial assets, but it is more marked among young people (18-34 years, 60%), who have a more limited number of savings vehicles than their elders.
Then follow ” guaranteed investments in the context of life insurance or savings » (32%), i.e. funds in euros, envelope of life insurance, capitalization or PER contracts whose capital is guaranteed, but whose remuneration was on average lower than that of regulated savings (on the 2021 return basis).
Finally, 17% declare having placed their savings on the stock market (42% in life insurance, 38% in PEA, 32% in securities accounts, 28% in employee savings, 24% in PER, etc.), 8% in real estate and 15% in other forms of investment.
What are the savings projections of the French in 2023?
Inflation projections promise a further decline in French purchasing power next year, with a peak expected in the first half of 2023, according to Banque de France projections. And in this context, far fewer French people plan to put money aside in the next twelve months.
The slowdown is notorious: according to the AMF barometer, in 2023, these savings intentions drop to 58% (compared to 76% in 2022). In half of the cases, these intentions will be to invest an amount at least equivalent to 2022, but for a third, it will be less.
But there is also room for caution on the spending side: the French are also less likely to plan to dip into their savings in the coming year than in 2022: 40% plan to do so, 17% will spend more, 15% just as much and 7 % only slightly less. A third do not anticipate touching their woolen socks in 2023. And in this context of uncertainty, 28% do not yet know what they will do…