Belgians and their savings; let’s wake up Sleeping Beauty!

The Belgian is a good saver. During the first six months of 2019, there was an increase in savings accounts of at least €8.4 billion, despite the fact that they do not generate more than 0.11% per year. Since 2013, we have seen the largest increase in this area here, with bankbooks showing a record amount of 279 billion euros [1].

Banks agree that so-called “traditional” solutions such as government bonds or term accounts yield practically nothing, which does not leave many opportunities for the saver. The Belgian accept to adopt a “waiting” attitude since they park their money in these savings accounts in the hope of seeing long-term interest rates rise (which, between us, is not likely to happen any time soon). The effects of the financial crisis and the fall in equity markets in 2018 have led to a cautious attitude on the part of Belgian investors, who are opting for stability at the expense of volatility and risks. In addition, the effects of the tax shift lead to a delayed adjustment of consumption, which allows citizens to save more on their incomes this year.

Nevertheless, despite the caution, the investment is somewhat titillating the adventurous spirit of the Belgians. Belfius and Axa reported that in 2017, some products with potentially higher returns began to gain popularity, including investment funds [2]. It now remains to direct this money towards responsible investment funds, such as those proposed by the Solifin network members.

[1] L’Echo, « Les belges n’ont jamais autant épargné », 2 juillet 2019

[2] L’Echo, « le Belge fidèle à son épargne mais tenté par l’investissement », 2018