Home Business The saving behavior of the Dutch: a decade of change

The saving behavior of the Dutch: a decade of change

The saving behavior of the Dutch: a decade of change

Saving is something that many Dutch people are taught from a young age. Putting money aside to build a financial buffer or to achieve a specific goal is therefore a very important trait. Due to the changing economic climate, there have been significant fluctuations in savings behavior in our country over the past decade. In this article, we take a look at how the Dutch have managed their money over the years.

Dutch and saving

The Organization for Economic Cooperation and Development (OECD), an international organization tasked with promoting cooperation and coordination between countries to boost economic development and growth, clearly presents the annual savings percentage over the past decade.

While households saved 9 percent of their disposable income in 2012, this figure rose to a high of 10.8 percent in 2016. This was followed by a small decline in 2017 and 2018, giving percentages of 9.3 and 9.3 percent, respectively.

After that, the popularity of saving increased rapidly again. In 2019, households saved 12 percent of disposable income, and in 2020 there will be a huge increase to 18.8 percent. This is the highest percentage since 1995. However, the OECD does not have any data before 1995, which means that no conclusions can be drawn as to when such a large proportion of disposable income was last saved in the Netherlands.

Statistics Netherlands defines disposable income as ‘gross income less current transfers paid, income insurance premiums, health insurance premiums and income and wealth taxes’. According to Dutch statistics, households had an average disposable income of 46,800 in 2020. On average, household savings this year amounted to EUR 8,798.40 per household.

The year 2020 was of course dominated by the corona pandemic, which brought private household consumption to an all-time low. In addition, due to the economic uncertainties, there was a strong preference for liquid savings. In 2021 and 2022, the savings rate fell again to 17 and 12.7 percent, respectively.

How much will people save in 2023?

Earlier this month you could read on Crypto Insiders that in the Netherlands we are saving an average of about 6.5 percent of our salary this year. However, the National Institute for Budget Information (Nibud) recommends saving 10 percent on your paycheck.

If you’re looking to save a bigger chunk of your income, consider tips from master investor Warren Buffet.

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