How the French Have Changed Their Savings Plans
The Cercle des Épargnants recently released the 22nd edition of its survey, “The French, Savings, and Retirement,” highlighting a notable shift in savings intentions amid rising inflation.
Savings intentions are undergoing significant changes, as the French are increasingly considering drawing on their savings to support their spending. Thus, 28% of those surveyed plan to use their savings over the coming year, a figure that has been steadily rising since 2020 (21%). However, 31% of savers intend to save more.
Precautionary savings remain the main reason for saving (52%), followed by preparing for retirement (26%), providing financial support for their children (22%), and planning for the risk of long-term care (22%).
Notably, attitudes are changing: 49% of those surveyed believe it is better to “spend and enjoy the present because we don’t know what the future holds” (+23 points in 7 years). In addition, savers are showing increased interest in products that offer higher returns but are also riskier (36%, up 20 points in 7 years) or less liquid (36%, up 7 points in 3 years).
Bank savings accounts are still widely perceived as the best savings product (50%, up 20 points in two years), followed by life insurance (28%) and home savings plans (22%). Furthermore, the Livret A is considered the best retirement savings product by 24% of savers (+6 percentage points in one year), ahead of the Retirement Savings Plan (PER) (23%) and life insurance (22%).
When it comes to socially responsible investments, only 28% of French people prefer an investment that yields a lower return but is socially responsible. Furthermore, only 37% are aware of the SRI label.
When it comes to pensions, although they remain concerned, the French seem less worried than before: 66% are concerned about the future of the pension system (down 3 points in 1 year and down 21 points in 7 years), and 50% are worried about their own retirement (down 11 points in 1 year and down 23 points in 7 years). This concern is more pronounced among those without financial assets (70%) than among those with at least 50,000 euros (30%).
The Retirement Savings Plan (PER), launched in 2019, is becoming increasingly well-known, with 68% of respondents having heard of it (+18 percentage points in 4 years).
