Suggesting that Spaniards might have higher net wealth than people in Germany might come as a shock given headlines in the aftermath of the global financial crisis about Spanish debt problems. A study for the Think Forward Initiative by ING head of macroeconomics Maarten Leen examines household assets and liabilities to calculate the overall wealth. It looks at 12 countries.
Leen says wealth may exist as a house, bank deposit, share portfolio or another way and is important for long-term security. “Income may allow families to escape poverty and maintain a certain standard of living but assets can generate longer-term stability as they create a financial buffer for emergencies or retirement.”
How do we store wealth?
The study finds the average wealth portfolio in the Eurozone is 50% real estate and 17% for both currency and bank deposits and pensions. Shares and equities are 14%, with the remaining two percent comprising debt securities, loans, derivatives and employee stock options.
There are more details on the different countries in the infographic below.
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