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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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