How much material wealth do Belgians have? – Finance

Belgians are the second richest in Europe, just behind the Netherlands, with an average financial wealth per capita of €121,000. According to a recent study in Europe by credit insurer Allianz Trade, the annual increase in this inheritance was on average €3,830.

The study focuses on the evolution of the average financial wealth of individuals in different European countries over the last ten years. Allianz Trade considered the value of savings, investments and pensions in this study and did not consider the value of real estate less mortgage debt.

72% of Belgians own it

If this criterion had been maintained, Belgium would certainly have scored higher, given that 72% of Belgians own their own home and some 850,000 of them even own two or more apartments. As an indication of this, figures from the National Bank of Belgium (BNB) reveal that Belgians own more than €1.741 billion in real estate in 2021.

Johan Geeroms, Director of Risk Underwriting Benelux at Allianz Trade, explains that wealth can grow in a number of ways: “Sure, interest rates have been hovering around zero for a long time, but if people continue to save a lot, wealth can increase dramatically. These savings have also been used more for investments that have yielded good returns in recent years. The Netherlands and the Finns achieve the highest investment returns in this regard. More than two-thirds of the increase in their wealth came from appreciation, compared with less than a quarter in Germany. They don’t have to use their income to meet their savings goals, they do it through investments. ”

Savings is a luxury for Belgians

However, the Belgian wants to save more. However, according to the European Consumer Pay Report (1) published in early December, current inflation does not allow for savings, especially due to rising energy prices and consumer goods.

Thus, this report shows in particular that saving is becoming a luxury that many Belgians can no longer afford. More than half of Belgians (54%) expressed concern about being able to retire comfortably. A similar percentage are dissatisfied with the amount they can collect each month (53%). Half of Belgians are able to save 10% of their salary, but one in five respondents save nothing.

One in five Belgians (20%) has less than a month’s salary to cover unexpected expenses. However, this is still the main reason why Belgians want to save (for 38% of respondents). Other goals are retirement (16%) or travel (10%).

The Netherlands top 10

The Allianz Trade study also shows that the Netherlands leads the top 10 countries with the largest financial wealth in the European Union. At the end of last year, the average financial wealth per inhabitant in the Netherlands was 176,510 euros, or 4.5 times the lowest figure in Portugal, according to the credit insurer.

In addition, wealth in the Netherlands has grown the fastest in the last ten years, on average, by 7,230 euros per year. Allianz Trade also notes that “in no other European country in the top 10 is wealth distributed so well across income classes.“

German savings champion

If a Belgian regrets not being able to save as much as he would like because of inflation, it is not the same for his German neighbor. According to Allianz Trade research, Germany really wins the gold medal for savings. “German households have the highest average annual savings between 2012 and 2021or 2,900 euros, the credit insurer’s press release emphasizes. Households in the Netherlands (2,210 euros), France (1,790 euros) and Belgium (1,740 euros) also saved a high amount on average. At the bottom of the scale we find households in Southern Europe: Italy (€920), Spain (€580) and Portugal (€450).“Wealth in Germany increased by an average of 3,840 euros per year.

Watch out for inflation

Inflation could put an end to this growth in European wealth, or at least slow it significantly, by adversely affecting investment returns. “The unprecedented rise in inflation is seriously undermining itJohan Geeroms explains. In 2021, the average gross income decreased by -60%. It will be even worse in 2022. The return will be very negative. For 2023, we can expect improvement. However, with annual inflation around 5%, returns are likely to remain in the red. ”

Belgians are the second richest in Europe, just behind the Netherlands, with an average financial wealth per capita of €121,000. According to a recent study in Europe by credit insurer Allianz Trade, the annual increase in this inheritance was on average €3,830. The study focuses on the evolution of the average financial wealth of individuals in different European countries over the last ten years. Allianz Trade considered the value of savings, investments and pensions in this study and did not consider the value of real estate less mortgage debt. If this criterion of 72% of Belgians had been maintained, Belgium would certainly have scored even higher, given that 72% of Belgians own their own home and some 850,000 of them even own two or more homes. As an indication of this, figures from the National Bank of Belgium (BNB) reveal that Belgians own more than €1.741 billion in real estate in 2021. Johan Geeroms, director of Risk Underwriting Benelux at Allianz Trade, explains that wealth can grow in a number of ways: “Of course, interest rates have been around zero for a long time, but if people continue to save a lot of money, wealth can grow significantly. This savings has also done well in recent years. is used more for income-generating investments. The Netherlands and the Finns achieve the highest investment returns in this regard. More than two-thirds of the increase in their wealth has come from appreciation, compared to less than a quarter in Germany. They achieve their savings goals, they do so through investments.” e, a luxury for Belgians Belgians still want to save more. However, according to the European Consumer Payments Report (1) published in early December, current inflation is preventing them from putting money away, especially due to rising energy prices and consumer goods. Savings in particular is a Many Belgians have already died becomes an unaffordable luxury. More than half of Belgians (54%) expressed concern about being able to retire comfortably. A similar percentage are dissatisfied with the amount they can collect each month (53%). Half of Belgians are able to save 10% of their salary, but one in five respondents save nothing. One in five Belgians (20%) has less than a month’s salary to cover unexpected expenses. However, this is still the main reason why Belgians want to save (for 38% of respondents). Other goals are retirement (16%) or travel (10%). The Netherlands is at the top of the top 10. The Allianz Trade study also shows that the Netherlands is among the top 10 European Union countries with the most significant financial assets. At the end of last year, the average financial wealth per inhabitant in the Netherlands was 176,510 euros, or 4.5 times the lowest score in Portugal, according to the credit insurer. in the last ten years it has grown the fastest on average, i.e. 7230 euros per year. Allianz Trade also notes that “in no other European country in the top 10 is wealth distributed so well across income classes.” If the Belgians, Germany’s savings champions, lament that they have not been able to beat inflation as they would like, the same is not true of its Germans. neighbor According to Allianz Trade research, Germany really wins the gold medal for savings. “German households saved the highest average annual amount between 2012 and 2021 at €2,900,” the credit insurer said in a press release. Households in the Netherlands (€2,210), France (€1,790) and Belgium (€1,740) At the bottom of the scale, we see households in Southern Europe: Italy (€920), Spain (€580) and Portugal (€450). In Germany, wealth increased by an average of €3,840 per year. Beware of inflation. Inflation affects investment returns with a negative impact, this growth in European wealth may well stop or at least slow down significantly. “The unprecedented rise in inflation is having a serious impact on it, explains Johan Geeroms. In 2021, the average gross income decreased by -60%. In 2022, it will be even worse. The income will be very negative. For 2023, we can do it. we expect some progress. However, even if annual inflation is around 5%, incomes will likely remain in the red.”