Over a third of Latvian households had no savings in 2020

Data published April 7 by the Central Statistical Bureau (CSB) show that more than a third (35.2%) of Latvian households had no savings in 2020.

For almost as many (35.7 %) households, savings would allow them to maintain their current standard of living for no more than 3 months, while 29.2 % of the households – for 3 months or more.

Household savings depend on income. While more than half (52.7 %) of households in quintile group 1 (the poorest) had no savings, only 17.7 % of households in quintile group 5 (wealthiest) did not have savings. Only 15.5 % of quintile group 1 households could maintain their standard of living for 3 months or more from savings alone, while in the quintile group 5 this corresponds to more than half (52.9 %) of households.

Half (50.4 %) of households below the at-risk-of-poverty threshold have no savings, 34.9 % of these households would have sufficient savings for less than 3 months, and 14.8 % would have savings for more than 3 months. Every third household above the at-risk-of-poverty threshold has no savings (29.1 %), 36 % has savings for 3 months and 34.9 % has savings for more than 3 months.

A large part (43.9%) of single seniors over the age of 65 have no savings. However, despite the lower income, more than half of single seniors have savings – 36.3 % would have enough savings for less than 3 months, while 19.8 % would have enough for more than 3 months. Families with children are more cautious and the least number of households without savings was between couples with one child (26.3 %) and couples with two children (27.2 %). 39.8 % of couples with one child savings would be enough to maintain the current standard of living for less than 3 months, while 33.8 % – for more than 3 months.

Data was obtained from the CSB 2020 EU-SILC Survey. It surveyed more than 6 thousand households and interviewed 11 thousand respondents aged 16 and over.

LSM.LV

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