The savings rate in Portugal reached its peak in 1972 at 31.2%, according to the statistical series of the Bank of Portugal. It hovered around 20% in the following years but began to decline in the 1990s, hitting its lowest point in 2008 during the financial crisis.
In 2020, during the pandemic, the savings rate surged to 12% as Portuguese citizens experienced multiple lockdowns and faced high uncertainty about the future.
Following declines in the subsequent two years, Portuguese citizens increased their savings again in 2023 and by 2024, the rate reached 2003 highs, standing at 12.1%.
For this year, data is only available for the second quarter, during which the household savings rate rose by 0.2 percentage points compared to the previous quarter, reaching 12.6% of disposable income.
According to the Quarterly National Accounts by Institutional Sector from INE, the final consumption expenditure increased by 1.4%, which was less than the 1.5% growth in Gross Disposable Income (GDI), driving this trend.
A study conducted by the TGM Research Institute for Xtb indicates that the Portuguese manage to save a portion of their monthly income, yet the majority are unable to set aside a significant percentage.
The study, which surveyed 1,000 participants, found that 72% of Portuguese say they can save part of their monthly income.
However, more than a third save only between 5% and 10% of their monthly income, and only 16% save more than 20%.
Regarding savings motivations, many aim to cover unexpected expenses (37%) or achieve personal goals (36%), while about one-sixth save for retirement or long-term purposes.
Among the obstacles to saving identified in this study are high fixed expenses (49%) and low income (47%).
Today marks World Savings Day, established by the World Society of Savings Banks to promote personal saving and strengthen the economic self-sufficiency of individuals.
