What is the financial wealth of Belgians?

Belgians are the second richest in Europe, just behind the Dutch, with an average financial wealth per capita of 121,000 euros. The annual increase in this heritage was 3,830 euros on average, according to a recent study by the credit insurer Allianz Trade conducted in Europe.

The study focused on the evolution of the average financial wealth of individuals over the last ten years in the various European countries. In this study, Allianz Trade took into account the value of savings, investments and pensions, and did not take into account the value of real estate less mortgage debt.

72% of Belgians own

If this criterion had been retained, Belgium would undoubtedly have obtained an even higher score, given that 72% of Belgians own their own house and that approximately 850,000 of them even own two or more dwellings. As an indication, figures from the National Bank of Belgium (BNB) reveal that Belgians owned more than 1.741 billion euros in real estate in 2021.

Johan Geeroms, Director Risk Underwriting Benelux at Allianz Trade, explains that a wealth can grow in different ways: “Sure, interest rates have been hovering around zero for a long time, but if people continue to save a lot, wealth can increase dramatically. These savings have also been used much more often for investments, which has generated good returns in recent years. The Dutch and the Finns achieve the highest investment returns in this respect. More than two-thirds of the growth in their wealth was due to appreciations in value, compared to less than a quarter in Germany. They don’t have to use their income to meet their savings goals, they do so through investments. ”

Savings, a luxury for Belgians

Yet the Belgian would like to save more. But, according to a report by the European Consumer Payment Report (1), published at the beginning of December, the current inflation prevents it from putting money aside, in particular because of the rise in energy prices and consumer products.

Thus this report reveals in particular that saving seems to be becoming a luxury that many Belgians can no longer afford. More than half of Belgians (54%) say they are worried about whether they will be able to afford a comfortable retirement. A similar percentage are dissatisfied with the amount they can save each month (53%). Half of Belgians seem to be able to save 10% of their salary, but one in five respondents saves nothing at all.

One in five Belgians (20%) has less than a month’s salary to cover unforeseen expenses. However, this is still the main reason why Belgians want to save (for 38% of respondents). Other goals are retirement (16%) or travel (10%).

The Netherlands top 10

The Allianz Trade study also shows that the Netherlands tops the top 10 countries in the European Union with the greatest financial wealth. At the end of last year, the average financial wealth per inhabitant in the Netherlands was 176,510 euros, or, as the credit insurer points out, more than 4.5 times the lowest score held by Portugal.

In addition, it is also in the Netherlands that wealth has increased the fastest on average over the past ten years, namely by 7,230 euros per year. Allianz Trade also points out that “in no other European country in the top 10 is wealth distributed so well between income classes.“

Germany savings champion

If the Belgian regrets not being able to save as he wishes because of inflation, it is not the same for his German neighbor. Germany indeed wins the gold medal for savings, according to the Allianz Trade study. “German households saved the highest average annual amount between 2012 and 2021or 2,900 euros, underlines the press release from the credit insurer. Households in the Netherlands (2,210 euros), France (1,790 euros) and Belgium (1,740 euros) also saved a higher than average amount. At the bottom of the scale, we find households in southern Europe: Italy (920 euros), Spain (580 euros) and Portugal (450 euros).“In Germany, wealth has increased by an average of 3,840 euros per year.

Watch out for inflation

Inflation could well put an end to, or at least significantly slow down, this rise in European wealth, by weighing negatively on investment returns. “The unprecedented rise in inflation seriously undermines itexplains Johan Geeroms. In 2021, the average total return fell by -60%. In 2022, it will be even worse. The return will be strongly negative. For 2023, we can expect an improvement. However, with annual inflation around 5%, yields will most likely remain in the red. ”

Belgians are the second richest in Europe, just behind the Dutch, with an average financial wealth per capita of 121,000 euros. The annual increase in this heritage was 3,830 euros on average, according to a recent study by the credit insurer Allianz Trade conducted in Europe. The study focused on the evolution of the average financial wealth of individuals over the last ten years in the various European countries. In this study, Allianz Trade took into account the value of savings, investments and pensions, and did not take into account the value of real estate less mortgage debt. 72% of Belgians owning If this criterion had been retained, Belgium could undoubtedly have obtained an even higher score, given that 72% of Belgians own their own house and that approximately 850,000 of them even own two dwellings or more. As an indication, figures from the National Bank of Belgium (BNB) reveal that Belgians owned more than 1.741 billion euros in real estate in 2021. Johan Geeroms, Director Risk Underwriting Benelux at Allianz Trade, explains that a wealth can grow in different ways: “Of course, interest rates have been around zero for a long time, but if people continue to save a lot, wealth can increase significantly. This savings has also been used much more often for investments, which has generated good returns in recent years. The Dutch and Finns achieve the highest investment returns in this respect. More than two-thirds of the growth in their wealth was due to appreciations in value, compared to less than a quarter in Germany. They don’t have to use their income to meet their savings goals, they do so through investments.” e, a luxury for the Belgians Yet the Belgian would like to save more. But, according to a report by the European Consumer Payment Report (1), published at the beginning of December, the current inflation prevents it from putting money aside, in particular because of the rise in energy prices and consumer products. Thus this report reveals in particular that saving seems to be becoming a luxury that many Belgians can no longer afford. More than half of Belgians (54%) say they are worried about whether they will be able to afford a comfortable retirement. A similar percentage are dissatisfied with the amount they can save each month (53%). Half of Belgians seem to be able to save 10% of their salary, but one in five respondents saves nothing at all. One in five Belgians (20%) has less than a month’s salary to cover unforeseen expenses. However, this is still the main reason why Belgians want to save (for 38% of respondents). Other goals are retirement (16%) or travel (10%). The Netherlands at the top of the top 10The Allianz Trade study also shows that the Netherlands tops the top 10 of European Union countries with the most significant financial assets. At the end of last year, the average financial wealth per inhabitant in the Netherlands was 176,510 euros, or, as the credit insurer points out, more than 4.5 times the lowest score held by Portugal. Moreover, it is also in the Netherlands that wealth has increased the fastest on average over the past ten years, namely by 7,230 euros per year. Allianz Trade also points out that “in no other European country in the top 10 is wealth distributed so well between income classes.”Germany champion of savingsIf Belgians regret not being able to save as they wish inflation, the same is not true for its German neighbour. Germany indeed wins the gold medal for savings, according to the Allianz Trade study. “German households saved the highest average annual amount between 2012 and 2021, i.e. 2,900 euros, underlines the press release from the credit insurer. Households in the Netherlands (2,210 euros), in France (1,790 euros) and in Belgium (1,740 euros) also saved a higher than average amount. At the bottom of the scale, we find households in southern Europe: Italy (920 euros), Spain (580 euros) and Portugal (450 euros).” In Germany, wealth has increased by an average of 3,840 euros per year.Beware of inflationInflation could well put an end to, or at least significantly slow down, this increase in European wealth, by weighing negatively on investment returns. “The unprecedented rise in inflation is seriously affecting it, explains Johan Geeroms. In 2021, the average total return has fallen by -60%. In 2022, it will be even worse. The return will be strongly negative. For 2023, we can expect some improvement. However, with annual inflation around 5%, yields will most likely remain in the red.”