Where the smart savers live

Aesop’s ant was a hero. It saved for a rainy day while the grasshopper sang and danced. But if interest rates were low when the famed fable was written, Aesop may have been well-advised to tell the ant to invest rather than save.

A modern-day version of Aesop’s fable has been playing out in the eurozone. The difference is that the now-wise grasshopper is winning by investing smartly.

The ant, on the other hand, is working harder to save more as its deposits bring no returns.

Allianz Research goes on the eurozone money trail to find out where the smart-saving grasshoppers and the hard-saving ants live...

Highs and lows

One would say the ant is a rather good representative of Germany’s attitude towards money. ‘Wo Sparsamkeit haushaelt, waechst der Speck am Balken‘, believe the Germans. Loosely translated, it means ‘bacon’ – signifying prosperity – grows in homes that embrace frugality.

Traditionally, the Germans have relied on deposits and safe instruments to park their savings, shying away from investing in the risky capital markets.

Then, the going got tougher.

Eurozone savers have been caught between a rock and a hard place: interest rates linger around zero but inflation is nudging living costs higher. What has set one saver apart from another is the saving strategy.

You would think that the Germans – whose economic strength is known the world over – would be making money dance to their tune. But it’s actually the Spaniards who are beating the Germans at this game.

Allianz Research Germany Spain savings

Between 2003 and 2017, both Germany and Spain have seen their per capita financial assets rise by around 70 percent. However, the Germans use their regular income for spending needs while the Spaniards use half of their investment income for meeting their needs and wants.

The difference? In Germany, the average household has only 7 percent of its assets in equity while in Spain, the proportion is 22 percent! This means that the Spanish have not only earned more from interest and dividends but also benefited from the rise in share prices in the period.

To wit, German households have received returns of 2.8 percent on their assets. In contrast, the Spanish have pocketed about 5.1 percent.

The Austrians too seem to have struggled like the Germans with a 2.9 percent return, while the Dutch have shown the same money-savvy as the Spaniards, allowing investment income to pay for their consumption.

Interestingly, Finland tops the 2003-2017 growth chart when it comes to per capita financial assets – a whopping 121 percent! 

Allianz Research Germany Spain equity investments

Put money to work

The bottom line is that financial assets can grow even in a zero interest rate environment. There are two ways: Either savers generate high returns by focusing their investment behavior more on the capital markets, or they inject more of their earned income into savings.

The choice is between smart saving and hard saving - being an ant or a grasshopper. 

The Allianz Group is one of the world's leading insurers and asset managers with 126 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 716 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage nearly 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance  industry in the Dow Jones Sustainability Index. In 2021, over 155,000 employees achieved total revenues of 148.5 billion euros and an operating profit of 13.4 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.
** As of June 30, 2022

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Lorenz Weimann
Allianz SE
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:

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