How satisfied are Italians with their savings? And how much Europeans? Only 8% of Italians managed to save more, while 41% have personal debt against the European average of 50%. We are therefore in line with the rest of Europe. This is documented by the latest International Savings Survey conducted by the ING Consumer Economics department in London on a sample of 15 consumers in the 13 European countries where ING is present (including Turkey), as well as the United States and Australia. The study aims to understand how individuals perceive their financial situation in relation to the size of savings and personal debt, a definition that includes personal loans, credit cards, overdrafts, family loans and consumer credit, but excluding mortgages.
Unhappy Italians
The Survey reveals how the Italians confirm that they are not very satisfied of their level of savings, with 17% of the interviewees declaring themselves so (but it was even less than 15% a year ago), surpassed in terms of pessimism only by the Poles (12% of pessimists), against a European average of 26%, stable compared to a year ago. Leading the ranking, as well as last year, is Holland where 43% of the interviewees are satisfied (42% a year ago).
Not surprisingly, the most satisfied are generally also those who have managed to increase their savings over the past year. In fact, only 8% of Italians saved more in 2015, while 34% report a decrease in savings and 31% indicate it is stable.
With a +1, the Italian "net comfort" still remains very far from that recorded in Holland, Luxembourg and Great Britain, which lead the ranking with +28, +25 and +21 respectively.
Debts under control
If the ability of Italians to accumulate new savings still appears rather limited, however, only 41% have personal debts against the European average of 50%. It is therefore understandable that only 16% of the interviewees declare themselves uneasy about their level of debt compared to a European average of 25%.
Among Italians who have seen savings grow, the most frequently cited reason (by 43%) is the increase in regular income, while 32% indicate that the increase is the result of a deliberate decision. The two reasons most frequently cited by those who have instead seen their savings decrease are the occurrence of unexpected expenses (40%) and the need to compensate for the decline in income (38%).
Spending still low
Le greater difficulty for Italians to accumulate savings are reflected in spending behavior. If the average European consumer claims to have increased spending for eight out of ten categories among those investigated by the Survey, Italians instead declare an increase in only three categories: food, mortgages or rents, health. On the other hand, spending on transport and home furnishings is down; lastly, a sharper contraction affects more luxuries such as holidays, free time, clothing and personal care, but also – an interesting element – savings for retirement purposes.
“The survey seems to confirm that the weak economic recovery that began in 2015 - comments Paolo Pizzoli, Senior Economist at ING Bank Italia - has so far had a still limited impact on the ability of Italians to accumulate new savings. In a context of high uncertainty, consumers have remained cautious, probably awaiting confirmation on the sustainability of the employment recovery. In the absence of upward pressure on wages, employment remains the fundamental determinant of the recovery of household disposable income. These, which can boast a relatively low level of debt, should continue to benefit from the banking system's greater willingness to grant credit, recently confirmed by the Bank of Italy”.
