“The distribution of savings in Portugal is quite unequal”. This is the conclusion reached by Banco de Portugal (BdP) when analysing the distribution of household savings across their income while highlighting that more than 55% of savings are concentrated in just 20% of the richest families.

When analysing savings by income levels, the BdP concludes that there is “high inequality in the distribution of savings”. This is because “the 20% of families with the highest income generate 55% of savings. In turn, in the lowest income decile expenses are greater than income”, which means that there is no scope for saving, reads the December Economic Bulletin.

And when analysing the distribution of income and age groups, “it appears that the savings rate increases with income in all age groups”, highlights the BdP. Furthermore, “comparing savings rates in each income decile, it is observed that the highest savings rates are found in the highest age groups [between 45-64 years and over 64 years]”, he concludes.

When analysing the different levels of savings, the regulator led by Mário Centeno also concludes that “households in the two highest deciles of the savings distribution are responsible for around two thirds of savings”. On the other hand, the first two levels present a negative average savings “which corresponds, for example, to situations of financing expenses using credit or accumulated wealth”.