Tax Uncertainty and French Households’ Savings: Adaptation Strategies.
The government’s recent tax announcements—including measures such as one-time contributions from the wealthiest individuals and reforms to savings and real estate investments—have raised questions among many savers. A study conducted by Iroko, in partnership with Kantar, highlights the impact of this unstable economic and tax environment on the financial behavior of the French. Here are the key findings of this survey.
Adapting to Uncertainty: Caution and Inaction
Nearly 40% of French people are considering changing their savings strategy, although 27% remain undecided in the face of this uncertain economic climate. This caution is reflected in a strong preference for safe and liquid investments: 54% of respondents favor regulated banking products (Livret A, LDD, PEL), while one-third are considering purchasing life insurance or a PER.
However, 32% of respondents do not plan to make any changes, illustrating a tendency toward inaction due to persistent uncertainty. Young people (under 30) and high-income earners (>€75,000/year) are more inclined to reassess their strategy, often by seeking out more dynamic investment opportunities.
Real Estate: The Unbeatable Safe Haven
In a climate marked by heightened risk aversion, real estate remains the preferred investment of the French. If given €100,000 to invest, 34% of those surveyed would choose to invest in real estate, particularly younger generations (45% of those under 30). This choice reflects a desire to safeguard their savings while generating stable returns.
In addition, 36% of French people believe that real estate is the most effective investment for building a retirement income. Secure euro-denominated funds (22%) and gold (21%) round out the top three preferred investment options. These trends confirm the appeal of tangible or secure investment solutions for savers concerned with preserving their capital.
SCPIs: An Emerging Option
SCPIs (Sociétés Civiles de Placement Immobilier) are also attracting growing interest, although only 10% of French people say they plan to invest in them in the coming months. This figure rises to 22% among those under 30 and 16% among high-income earners. Among the reasons for this enthusiasm, investors cite solid returns (91% satisfaction rate) and the absence of subscription fees for solutions such as Iroko Zen or Remake Live.
However, one obstacle remains: 33% of respondents say they are unfamiliar with these products, underscoring the importance of greater education to make this savings option more widely accessible.
A desire for security, despite disappointing performance
Regulated banking products, while valued for their security, are also a source of frustration for 34% of French people, particularly because of their limited returns despite recent interest rate hikes. Conversely, SCPIs (91%) and structured products (93%) are emerging as investments that offer a high level of satisfaction.
Despite this pursuit of performance, caution remains the order of the day: nearly 49% of respondents prefer risk-free products, while only 5% dare to invest in high-yield options. This behavior reflects a general aversion to risk, reinforced by the current economic and fiscal climate.
Investing to Build Wealth
The main motivation for French people when it comes to investing remains building wealth: 40% of respondents cited this goal as a priority, ahead of diversifying investments (27%) and financing personal projects (19%). Young people are more ambitious, with 38% of those under 30 citing investing as a way to make their future plans a reality.
However, one in ten savers plans to take advantage of available tax benefits—a figure that rises to 32% among those with middle incomes (€75,000 to €89,000 per year)—revealing untapped potential for schemes that are still relatively unknown.
