Savings vs. Inflation: The French Face Tough Choices

Against a backdrop of record-high inflation, the behavior of French savers reveals a surprising paradox: despite the erosion of purchasing power, the majority still prioritize the safety and liquidity of their savings over returns. Here are the key findings from an OpinionWay survey conducted for XTB.
 

Safety First: Savings as a "Safety Net"
While inflation is perceived as being driven by rising energy prices (71%), commodity prices (67%), and geopolitical tensions (47%), 57% of French people choose liquid investments to safeguard their capital. Regulated savings accounts—which are simple and accessible—remain the preferred option for 48% of savers.
 

However, this caution comes at a cost: only 25% of French people are adjusting their strategies to counter inflation, revealing a risk aversion even in a context where investment returns could offer protection against rising prices.
 

Real Estate and Gold: Popular Safe-Haven Assets
When it comes to long-term investments, gold and real estate top the list of French people’s preferences.
• 35% of respondents view gold as a promising investment for the next two decades.
• 23% prefer real estate, which is seen as a sustainable way to secure their wealth.
Cryptocurrencies, although still considered risky by 64% of respondents, appeal to 12% of 18- to 24-year-olds, reflecting a generational appetite for innovative assets.
 

The French Paradox: Risk Aversion and a Low Appetite for Returns
Despite inflation eroding their savings, 69% of French people consider stocks too risky, and only 11% believe they will be among the best-performing investments in the coming decades. This behavior underscores a desire to preserve capital, even at the expense of returns.
 

Alternative ways to protect your savings
In addition to traditional investments, 56% of French people view investing in the real economy (real estate, local businesses) as an effective way to combat inflation. Some are even exploring radical options: 44% are considering moving abroad, a figure that rises to 60% among 18- to 24-year-olds.