Increased savings rate says nothing about distribution
An important note: these figures only say something about the total population and say nothing about its distribution. Previous research has shown that the savings rate generally increases with income.
For example, wage indexation is percentage. This is therefore much smaller for lower incomes than for higher incomes. This means they can put a lot more money aside.
Poverty organizations do not notice much of the increased savings rate. “We don’t see many people unable to meet their basic needs, let alone save,” says Heidi Degerickx of the Network against Armoede.
“Rental housing has become unaffordable,” she continues. “On average it costs 850 euros and the lowest incomes from work are only around 1,400 to 1,500 euros. And I haven’t even mentioned the immensely increased food prices.”
2023-09-12 20:03:00
#Belgians #saving #automatic #wage #indexation
