14 april 2021
22:07
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The measures against the pandemic forced families to save a great deal in 2020. Partly due to rising house prices, their net assets rose by 137 billion euros to a record of 2,807 billion.
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The Belgians invested a record amount of 40 billion euros in savings and investment products last year, says the National Bank. ‘That is partly a result of forced savings.’ The corona crisis made it very difficult to spend a lot of money. Non-essential stores and hospitality were closed for months, travel restrictions were in place, and many events were banned.
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For the first time, deposits on household current accounts rose above 100 billion euros.
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The Belgians were relatively careful with the money they could put aside. They mainly parked more fresh money in savings accounts (13.8 billion) and in current accounts (12.4 billion). The balances on current accounts rose above 100 billion euros for the first time. Many savers no longer make the effort to transfer money from the current account to the savings account, because a savings account hardly yields any more.
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Persistently low interest rates have also prompted many families to invest more. The Belgians invested 7.9 billion in investment funds. “There was also a remarkable renewed interest in listed shares,” notes the National Bank. The households bought listed shares for 6.2 billion euros, the highest amount since 2008.
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The essence
- In 2020 Belgians invested a record amount of 40 billion euros in savings and investment products.
- The measures against the corona virus forced families to save more.
- The price increase of housing generated a capital gain of 90 billion euros.
- The average Belgian has a net worth of EUR 244,000.
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Savings certificates and bonds
As in previous years, the popularity of debt securities, such as savings bonds and bonds, continues to decline. The return on fixed-income investments is very low because the European Central Bank buys bonds en masse.
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Households also posted a capital gain of 16.6 billion on their financial investments. Insurance products in particular, which mainly invest in bonds, gained in value. Bond prices rose thanks to the fall in long-term interest rates. But investors recorded a capital loss of 1.3 billion on the listed shares portfolio. Stock markets fell sharply in the first quarter, but made up for most of the losses later in the year.
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The 5.7 percent increase in house prices generated added value of around 90 billion euros.
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The 5.7 percent increase in house prices provided Belgians with a capital gain of around 90 billion, De Tijd calculated. The demand for real estate, including as an investment, remains high. At the same time, the pandemic caused the supply to drop slightly. Because the purchase of a home is usually partly financed with a home loan, household debts rose by 11 billion.
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Multi-millionaires
Mainly due to the added value on real estate and the extensive savings, the net wealth of households rose by 137 billion euros to a record of 2,807 billion. This means that the average Belgian has a net wealth of around 244,000 euros and that the average family owns 561,000 euros. Those averages are jacked up by multi-millionaires and hide big differences. About two thirds of households own less than the average, one third own more.
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The average Belgian has a net worth of around EUR 244,000.
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Over the past ten years, net financial assets have grown by an average of 3.3 percent per year. That is more than double the average inflation. The share of investment funds increased from 10.6 to 15.8 percent since 2010 and the weight of cash and current accounts grew from 6.4 to 9.9 percent. The share of savings certificates and bonds fell from 9.3 to barely 2.4 percent. Some of that money may have flowed into mixed or bond funds. There has been little change in the other savings and investment products.
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