The hearts of the French continue to lean towards real estate and life insurance, Actualité/Actu Epargne

The new annual survey by the Cercle de l’Epargne, in collaboration with AG2R and the savers’ association Amphitéa, examined savings behavior and motivations.

Conducted by Ifop with a representative panel of the adult population during the month of February, the study reveals that the French still have a weakness for investment in stone. Asked about the profitability and the level of risk of different investments, respondents place rental property first, then life insurance, as vehicles with the best low risk/good profitability ratio. Savings accounts come in third place, ahead of shares.

Bitcoin breakthrough

In 5th place in the ranking, bitcoin is making a real breakthrough this year, especially among young people, who think that cryptocurrency offers attractive profitability (81% of 18-24 year olds), unlike older people (45% of older people). 65 years old).

Asked about the most interesting investments to make their money grow, the French have a similar preference for rental property (68%) and life insurance (59%). Despite their level of risk, equities come in 3rd place (45%), ahead of the Livret A savings account (34%), which is however progressing compared to previous years, driven by “ increasing the rate to 1% “, notes the survey.

Two years after the start of the health crisis, the French savings rate is still high. Seven out of ten people say they manage to save a more or less significant amount of their income, and 13% say they manage to save at least 10% of their annual income. Although the level of this savings remains of course correlated with that of the financial means of households, the survey notes that even people with “modest” incomes (less than 2,000 euros net monthly per household) manage to save for more than 46% of ‘between them.

A savings rate still above its pre-crisis level

The unprecedented nature of the pandemic in 2020 – which had brought the economy to a halt and imposed weeks of confinement on the population – had driven the level of household savings to an exceptional level. “ This savings rate had peaked at 27.4% of gross household disposable income during the first confinement.recalls the economist Philippe Crevel, director of the Cercle de l’Epargne.

“Fallen” to 17% at the end of 2021, it remains higher than its pre-crisis level, which was around 15%. With currently very high inflation and the war in Ukraine, the woolen stocking of the French should not dwindle in the coming months. Philippe Crevel anticipates that this savings rate will remain at 17-18% in the 1st quarter of this year.

Motives: precaution and retreat

In this context, the motivations of the French to save remain mainly that of building up a financial cushion to deal with a hard blow (unemployment, health problem, 42%) and to prepare for retirement (30%). 23% are saving for a major purchase (car), 16% to help their family and leave an inheritance, and 13% to buy a home.

These motivations logically differ depending on the age group. A third of retirees say they take out insurance in anticipation of a future risk of dependency, while among young people, the motivations for consumption and investment are higher than among the rest of the population.

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