A survey organized by SEB revealed that more than half of Estonian people save less than before, and that the saving capacity of about a quarter has remained the same.
In the survey, Estonian residents were asked to compare their saving habits in the last six months with the previous six months. 53 percent of the respondents stated that they saved less, and 25 percent answered that they saved the same amount. 11 percent had saved more than before, and the same number could not give an assessment, SEB announced.
According to the bank, compared to the early spring survey, it can be seen that people have fewer opportunities to save. In the spring, about a third of the respondents claimed that they were saving less, and there were the same number of those whose ability to save had remained the same.
Compared to the previous six months, saving has decreased significantly in all age groups. If in the spring 31 percent of 30-39 year olds found that they had saved less than before, now this figure has increased to 51 percent in the same age group.
People aged 18-29 have been able to save more than before, but this percentage has also decreased compared to spring. In the spring, as many as 29 percent of 18-29-year-olds answered that they saved more than before, but now 17 percent say so.
"The rapid growth of Estonian savings already slowed down last autumn. Savings are hampered by record inflation, which has been over 20 percent since May compared to a year ago. It was the highest of the year in August, when consumer prices rose by 25.2 percent year-on-year. In an environment of rising prices, a large part of income goes to everyday expenses, i.e. as the survey also shows, more than half of those saved less than before," said Ainar Leppänen, SEB's head of retail banking.
Eesti Pank's statistics also show that starting from the fall of 2021, there has been a turnaround in the growth of private individuals' deposits: in addition to growth, deposits have decreased slightly in some months.
"There is a high probability that we will see a decrease in savings in the coming months as well, when significantly higher electricity and gas bills are expected to arrive in consumers' mailboxes. If at all possible, it is worthwhile to accumulate a cash buffer even in uncertain times, but due to inflation, it may be wise to combine saving with investing in order to better protect savings against a decline in purchasing power and to increase the value of assets," said Leppänen.
In the spring, North-East Estonia started to show a lower saving capacity than before, where 40 percent of the respondents saved less than before, but in autumn the proportion of those saving less than before has increased significantly everywhere. Only in South Estonia, 47 percent of the respondents saved less than before, elsewhere this figure was 50 percent or more, reaching as much as 67 percent in North-East Estonia.
Among those who saved less were service or sales workers, pensioners, but also top specialists, skilled workers, students and those on parental leave could also save less. A little more than a quarter of managers increased their savings, while only 6 percent of retirees found ways to increase their buffer.
"The results of the study show that the decline in the ability to save affects many people. If earlier we saw a decline in savings especially among the less well-off, now the buffer accumulation has also decreased among top specialists and skilled workers. It is certainly affected by both the changed economic situation and the significant price increase," added Leppänen.