November 5, 2021 | 4:00 pm
5% of households with higher incomes in the country has a net wealth average of 3.02 million pesos, while 20% with lower income has an average net wealth of 425,000 pesos, according to the National Survey on Household Finances (ENFIH) 2019, published this Friday by the National Institute of Statistics and Geography (Inegi) in collaboration with Banco de México (Banxico).
On the other hand, the net wealth of households is higher when the school grade of its members, since the median wealth of households in which the person of reference has a postgraduate degree is 921,000 pesos, while for households in which said person has no schooling, the figure rises to 203,000 pesos .
In contrast to their income, household net wealth tends to be higher when the reference person in the household has a older age, partly reflecting a process of wealth accumulation.
The median net wealth of households in which the reference person is 65 years of age or older is around 500,000 pesos. For households in which said person is between 45 and 54 years old, the figure is 325,000 pesos, and it is lower for households in which the person of reference is less than 45 years old.
In contrast, the median household income is higher for households in which the reference person is between 45 and 54 years old, and it is lower for households in which said person is older than 75 years.
Furthermore, most of the net wealth of households in Mexico comes from non-financial assets.
According to the 2019 survey data, a Gini coefficient of 0.47 is obtained for the distribution of income and one of 0.73 for the net wealth, which indicates that there is greater inequality in the distribution of the net wealth of households in the country than on their income, according to the document.
The Gini coefficient is a measure of income concentration that takes values between zero and one, when the value approaches one, it shows that there is a greater concentration of income; on the other hand, when the value approaches zero, the concentration of income is lower.
Although the data is prior to the impact of the impact of the pandemic and the economic crisis that it caused, data from the National Survey of Household Income and Expenditure (ENIGH) published last june they suggest that the inequality gap Income fell, particularly due to the lower income received by the richest households.
Of the 10 deciles, nine (11 to X) presented contractions in their income compared to 2018, so that the first decile, the one with the lowest income, was the only one with growth, that is, 90% of households experienced a decrease in their income current, according to ENIGH 2020.
This caused a decrease in the Gini coefficient for the distribution of income with transfers by deciles of households of 0.4156, compared to 0.4261 in 2018, although the decline could also be due to an underreporting of income in the highest strata.
99.5% of households, with some type of savings
The ENFIH 2019 also indicated that of the 36.6 million households in Mexico, 99.5% of them (36.5 million) have some type of financial or non-financial asset.
The financial assets refer to non-material assets as forms of saving, and which can be of a formal type through financial instruments (whether fixed or variable income), bank accounts, capitalized insurance or others, as well as alternative forms of saving (non-formal ) such as batches, savings banks with acquaintances or relatives, etc.
While the non-financial assets are assets with a physical value, such as real estate, vehicles, merchandise, furniture, machinery and equipment.
Between the non-financial assets, 97.8% of households have household items; 64.6% have the main home as an asset; 44.6% of households have a vehicle, 22.5% have property other than housing such as land, premises, office, etc; 22.3% have some business and 10.4% have other non-financial assets.
Of the total value of non-financial assets Of the households that add up to 27.2 billion pesos nationwide, the main home is the one that has the greatest weight in the distribution of said value with 54.4%, followed by other properties with 20.1%; 9.0% corresponds to businesses, 6.8% to vehicles, 6.2% to household goods and 3.5% to other types of goods (industrial or agricultural machinery, tools, poultry, livestock, among others).
The median value of household non-financial assets is 305,000 pesos and the average value is 775,000 pesos.
Meanwhile, between the financial assets Of the households, which add up to 2.2 trillion pesos, 78.5% belong to the retirement savings account, 6.6% to informal savings, 6.0% to formal savings, 5.8% to term deposits and 3.1% to other types of assets financial
56.9% of households, with debts
Regarding the issue of household debts or liabilities, the ENFIH reported that 56.9% of households (20.9 million) have some type of debt, either mortgage with 11.6% or 4.2 million or non-mortgage with 53.8% of the households (19.7 million), such as credit cards, payroll or personal loans, loans, etc.
Of the total value of household debt, 55.4% corresponds to mortgage debt, 11.5% to credit card, 9.3% to vehicles, 8.4% to payroll or personal credit and 15.4% to other debts.
Of the total number of households in the country, 14.3% have mortgage debt for their main home, while 6.8% have debt for other priorities, such as a home other than the main one, premises, land, offices, among other properties.
Of the total value of household debt that amounts to 1.6 trillion pesos, the main home has the greatest weight in the distribution of debt with 38.7%.
#ENFIH estimates that 56.9% of households in Mexico during 2019 had some debt, of which 11.6% was a mortgage (average value of $ 317,000) and 53.8% a non-mortgage debt ($ 38,500). pic.twitter.com/pt9ncp9cuB
– Julio A. Santaella (@SantaellaJulio) November 5, 2021
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