October 31, 2020

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More families need to use their savings through Coronavir…

More families need to use their savings through Coronavir...

It seems that more families need to use their savings to earn a living. This is clear from questions put by the SNB on the sidelines of its monthly consumer survey.

Since April, the SNB has been asking a few additional questions, separate from the consumer survey, to determine the impact of the Corona crisis on the financial situation of families.

In July, 34 percent of respondents said they had only a relatively small savings buffer, especially a buffer of no more than three months. In June, it was 27 percent. At the same time, the proportion of families with a comfortable savings buffer declined. “These developments suggest that, as a result of the crisis, some family groups will have to use their savings to finance their current expenditure,” the SNB said.

Loss of income

Another question was the loss of income. In addition, 79 percent said they had not suffered a loss or a maximum of 10 percent as a result of the Corona crisis. Twelve percent say they lose 10 to 30 percent of income, while 9 percent say they lose more than 30 percent. These percentages are at the same level as in June.

By combining loss of income and saving buffers, you get an idea of the vulnerability of families to the Corona pandemic. According to the responses, 10% of “most vulnerable households” think so. This means that they expect an income loss of at least 10 percent and a savings buffer for up to three months of living costs. That is a bit more than in June. The proportion of the least affected families (for which the loss of income is limited to a maximum of 10% and the savings buffer covers expenditure for at least three months) has fallen to 55% (compared to 61% in June).