Savings bank calculation: 60 percent of households consume their entire income

Created: 09/13/2022, 17:03

By: Patricia Huber

Saving is becoming almost impossible for more and more Germans.

More than half currently have to spend their entire income on running costs.

Berlin – Inflation is causing problems for German consumers.

And that also gnaws at the savings.

Because very few employers will probably adjust salaries accordingly.

After all, they too suffer from the enormously high energy costs.

This has serious consequences for many people.

High costs: Hospitality, tourism & Co. suffer as a result

According to calculations by the German Savings Banks and Giro Association, 60 percent of households used up their entire monthly income and some savings for current expenses.

This is an enormously important factor for German medium-sized companies, the association announced on Tuesday.

Hospitality, tourism, retail and other service providers in particular have to adjust to the fact that customers spend less.

The Munich ifo Institute has also reported that the consumer mood of the Germans has decreased significantly.

Accordingly, 85 percent of all Germans fear rising prices and the consequences - for the standard of living, but also for savings.

The fear is particularly great when it comes to electricity and energy.

Here, 78 percent worry about the supply.

77 percent are afraid that the economic situation will deteriorate.

High energy prices: companies could face the brink of existence

The high energy prices could also threaten the existence of companies, said the association's president, Helmut Schleweis.

The association spoke out in favor of limiting electricity and gas prices.

In addition, households and companies would have to save at least 20 percent of their energy and invest in renewable energies.

"We don't see any signs of a crisis at the moment," said Schleweis, referring to the evaluation of the balance sheets of more than 300,000 corporate customers.

However, the outlook is difficult: "We all have strenuous years ahead of us, some of which will also be full of hardship." With an average equity ratio of just under 40 percent, companies have the capital to invest in the restructuring of the energy supply.

The supply of credit is also secured.