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The Financial Struggle: Why More and More Germans Are Dipping into Savings to Cover Living Expenses

Last November, the head of the savings bank found clear words and gave an insight into the financial developments of German households. Save? Very few can do that at the moment. The development is sometimes even worrying – also due to inflation. This can now be seen in the accounts of many customers of banks and savings banks. For almost a third of Germans it is now getting tight.

The head of the Sparkasse should be right

The salary is no longer enough to cover the running costs. “This shows that more and more people have to fall back on savings to cover their living expenses,” said Sparkasse President Helmut Schleweis at the end of 2022. And that doesn’t just affect people with low incomes. The middle class is also increasingly affected. In other words, people who have managed well with their income so far. A Postbank survey now makes this clear.

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The results of the survey that the Postbank commissioned by YouGov show: 21 percent of those surveyed are currently “rather not” able to get by with their salary; almost 9 percent “not at all” anymore. For households with a net income of less than 2,500 euros, on the other hand, it is already 43 percent. Conversely, this means that almost a third of all bank customers have to access their savings in order to be able to cover their living expenses. And it looks like that won’t change in the short term either. At least the boss of the savings bank looks into a bleak future.

Three difficult years

The savings banks expect the financial situation of most Germans to continue to deteriorate due to inflation, strains on global supply chains and ongoing geopolitical tensions. The resulting adjustment phase “will be accompanied by temporary losses in prosperity,” explained Schleweis at the end of last year. “We are facing at least three difficult years,” the head of the Sparkasse is certain. And this despite the fact that there have been and are salary adjustments for many Germans and the inflation rate has been falling for the second month in a row.

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2023-05-31 17:49:05
#Sparkasse #customers #losing #savings

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