German Savings Behavior in 2023: More People Are Saving Nothing

Saving habits have noticeably changed over time, as revealed by the annual Wealth Barometer (Vermögensbarometer) from the German Savings Banks Association (Deutscher Sparkassen- und Giroverband). In 2023, less than one-third of respondents (29%) stated they save regularly with fixed monthly amounts.

A Shift Towards Conditional and Declining Savings

For 31% of respondents, saving depends on their current financial situation. This means they only set money aside if something remains at the end of the month. The number of savers who save with variable amounts has decreased compared to previous years. While 24% reported saving variable and differing amounts monthly in 2022, this figure dropped to only 20% in 2023.

The Alarming Rise of Non-Savers

In contrast, the number of those who do not save at all has increased. One-fifth of respondents (20%) do not save or state they cannot. This continues a concerning trend. Since 2021, the proportion of non-savers has risen from 15% to 20%. People with low incomes, in particular, frequently report not saving at all.

Non-Savers by Income Group

• Household net income up to €1,000: 42% are non-savers.
• Household net income up to €2,000: 33% are non-savers.
• Household net income up to €3,000: 15% do not save at all.

These figures highlight the acute savings gap linked to disposable income, where essential living costs likely consume most or all of the budget for lower-income households.

Savings Amounts Are Also Declining

The amounts saved are also slightly declining. Compared to 2022, many respondents have slightly reduced their savings contributions.

• €251 to €500 per month: 12% (2022: 14%)
• €101 to €250 per month: 17% (unchanged from 2022)
• €51 to €100 per month: 18% (2022: 17%)

This indicates a broader trend of financial strain, potentially driven by persistent inflation, higher energy costs, and increased interest rates reducing disposable income.

Underlying Causes and Implications

The rise in non-savers and the reduction in savings amounts can be attributed to several factors:

1. Inflation Eroding Purchasing Power: Rising prices for essentials (food, energy, housing) leave less room for discretionary saving.
2. Stagnant Wages: In many sectors, wage growth has not kept pace with inflation, squeezing household budgets.
3. High Debt Servicing Costs: For households with variable-rate loans or new debt, higher interest rates increase monthly outgoings.
4. Lack of Financial Buffer: The increase in conditional savers suggests more people are living paycheck-to-paycheck, with no consistent surplus to save.

This trend has significant long-term implications for individual financial resilience and retirement security. Without savings, households are vulnerable to unexpected expenses (car repairs, medical bills) and lack the capital for future investments like home ownership or education.

What Can Be Done? Strategies for Individuals and Advisors

For those struggling to save, even small steps can make a difference:

• Start with a Budget: Track income and expenses to identify potential savings, however small.
• Automate Tiny Amounts: Setting up an automatic transfer of even €20-€50 per month to a separate savings account can build a habit and a small emergency fund over time.
• Utilize State Support: Explore government-sponsored savings incentives like the employee savings allowance (Arbeitnehmer-Sparzulage) if eligible, which provides a small bonus for regular savings.
• Seek Professional Advice: A financial advisor can help create a realistic plan tailored to individual circumstances, prioritizing high-interest debt reduction and efficient budgeting.

About the Study:
The Wealth Barometer has been conducted since 2005. This year, more than 4,800 people aged 14 and older were surveyed about money and finances.

The data paints a clear picture: financial resilience is weakening for a growing segment of the German population. Addressing this requires not only individual financial literacy efforts but also broader economic policies that support real income growth and cost-of-living stability.