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Swedish Middle class finding difficulties to save – government blamed for encouraging borrowing

Thursday, 05 July 2012
Many middle class Swedes have been found as having it hard to carry out any form of savings.  This comes after the bank, Länsförsäkringar posit that this group of Swedish people do not manage to pay their bills if their salary falls inside the end of the month.

In this vein, politicians are encouraged to do more to encourage savings in the Swedish household sector.

“Every fifth Swedish would face default if their salary would be withheld slight beyond the end of the month. This is serious,” says Rikard Josefson, CEO of Länsförsäkringar bank.

A study he commissioned shows that many would have problems if there would be a major unexpected expense, or if the money would not land on their payroll account at the end of the month. And it's about ordinary people, middle class, who are often held in this type of quagmire.

“It is not socially vulnerable groups, but the common people. The interesting thing we see in the survey is that those with family incomes Skr 40,000 - Skr45,000  have a greater resistance than families with incomes of Skr50,000 - Skr55,000 dollars,” says Rikard Josefson.

The survey also shows that the proportion who do not have anything saved has increased slightly over the past two years, from 10 to 13 percent, despite the financial crisis and unrest in the world economy. Richard Josefson means that it is partly the politicians’ errors.

“The politicians do nothing to encourage households to have a personal savings. All the encouragement for an average Swedish is to borrow. You have interest deductions and spending saving on home services. I do not criticize it but perhaps we should redirect some and encourage a greater savings to build more secure Swedish households,” he said.

One other reason that most people cannot not save is that they simply can not afford. Ingela Gabrielsson's Private Economist at Nordea sees great danger in this. Without saving the earnings are quickly consumed and it can lead to expensive loans so that it becomes even harder to save. But she does not think that it is primarily the responsibility of politicians to encourage savings.

“Everyone must surely take responsibility for their own finances and it is of course that one should try to put a small amount away every month. Whether it is especially favourable or not they have to try and do it for their own sake,” says Ingela Gabrielsson.
By Scancomark.se Team


Thursday, 05 July 2012
Many middle class Swedes have been found as having it hard to carry out any form of savings.  This comes after the bank, Länsförsäkringar posit that this group of Swedish people do not manage to pay their bills if their salary falls inside the end of the month.

In this vein, politicians are encouraged to do more to encourage savings in the Swedish household sector.

“Every fifth Swedish would face default if their salary would be withheld slight beyond the end of the month. This is serious,” says Rikard Josefson, CEO of Länsförsäkringar bank.

A study he commissioned shows that many would have problems if there would be a major unexpected expense, or if the money would not land on their payroll account at the end of the month. And it's about ordinary people, middle class, who are often held in this type of quagmire.

“It is not socially vulnerable groups, but the common people. The interesting thing we see in the survey is that those with family incomes Skr 40,000 - Skr45,000  have a greater resistance than families with incomes of Skr50,000 - Skr55,000 dollars,” says Rikard Josefson.

The survey also shows that the proportion who do not have anything saved has increased slightly over the past two years, from 10 to 13 percent, despite the financial crisis and unrest in the world economy. Richard Josefson means that it is partly the politicians’ errors.

“The politicians do nothing to encourage households to have a personal savings. All the encouragement for an average Swedish is to borrow. You have interest deductions and spending saving on home services. I do not criticize it but perhaps we should redirect some and encourage a greater savings to build more secure Swedish households,” he said.

One other reason that most people cannot not save is that they simply can not afford. Ingela Gabrielsson's Private Economist at Nordea sees great danger in this. Without saving the earnings are quickly consumed and it can lead to expensive loans so that it becomes even harder to save. But she does not think that it is primarily the responsibility of politicians to encourage savings.

“Everyone must surely take responsibility for their own finances and it is of course that one should try to put a small amount away every month. Whether it is especially favourable or not they have to try and do it for their own sake,” says Ingela Gabrielsson.
By Scancomark.se Team



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