Savings 2015: On the up?
For the last four years, respondents to the ING International Survey on savings have been asked how comfortable they are with the amount of money they have in savings, if they are adding to their stockpile and whether the economic situation has led to a deterioration in their finances.
Executive summary
For the last four years, respondents to the ING International Survey on Savings have been asked how comfortable they are with the amount of money they have in savings – a question that taps into feelings around money. The Netherlands tops the ING Savings Comfort League this year with the highest proportion saying they are very comfortable or comfortable with the amount they have in savings, up one place from second last year.
Almost two-in-five – or 38% – of people in Europe say they do not have any savings. It is a small rise on last year and rises to a high of 60% in Romania. Rises were seen in 10 of the 13 countries surveyed. In the survey, savings was defined as money readily available (specifically excluding pensions and policies that may pay out in the future).
In nine of the 13 countries surveyed, fewer people compared with this time last year are saying the current economic situation has led to a deterioration in their finances. It suggests more feel the wider economic environment is improving, despite pressure on the savings stockpile of some people.
Balancing savings with paying off debts appears to continue to challenge many people in Europe. Somewhat alarmingly, respondents are more likely to know how much interest they are paid on savings than how much they are paying on debts. And some appear to be missing an opportunity to use their savings to pay off high interest debt more quickly, with 44% in Europe with credit card debt saying they also have savings.
There is widespread caution around borrowing, with about four-in-five in Europe agreeing “It is easy to borrow money and get trapped in a cycle of debt”. The level of agreement is high across all of the 13 countries surveyed and there is little difference in the attitude of those people who have debt and those who do not.
The “money secrets” section of this survey shows about three-in-ten people in Europe agree it’s normal for couples to keep a few secrets about money from each other. The section is included because saving (and spending) is not done in isolation – the actions of others are important. Being willing to talk openly about money with loved ones is seen as positive in many cultures.
Of those in Europe with a long term partner, 17% disagree with the statement: “My partner knows of every bank or savings account that I have”, suggesting they have a secret account.
Almost one-in-five people in Europe who are married or in a long-term relationship agree they bought something and hidden the expense from their partner in the last year. People in Europe who have debt (other than a mortgage) are more likely to have hidden a splurge. But it seems much of the hidden spending is found out. Of a separate group in the survey who were asked if their partner had bought something and hidden the expense, 16% agreed.
There are few differences between money secrets kept by men and by women in the survey, however, age seems to have an influence. In general, money secrets are less common among couples aged 55 and over.
This 2015 report also examines debt and the types of “money secrets” kept across 13 countries in Europe.
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