In 2020, more than a third of Latvian households had no savings
Data compiled by the Central Statistical Bureau (CSB) show that more than a third (35.2 %) of Latvian households had no savings in 2020. For almost as many (35.7 %) households, savings would allow them to maintain their current standard of living for no more than 3 months, while 29.2 % of the households - for 3 months or more.
More than half of the poorest households have no savings
Household savings depend on income. While more than half (52.7 %) of households in quintile group 11 (the poorest) had no savings, only 17.7 % of households in quintile group 5 (wealthiest) did not have savings. Only 15.5 % of quintile group 1 households could maintain their standard of living for 3 months or more from savings alone, while in the quintile group 5 this corresponds to more than half (52.9 %) of households.
Half of households below the at-risk-of-poverty threshold do not have savings
Half (50.4 %) of households below the at-risk-of-poverty threshold2 have no savings, 34.9 % of these households would have sufficient savings for less than 3 months, and 14.8 % would have savings for more than 3 months. Every third household above the at-risk-of-poverty threshold has no savings (29.1 %), 36 % has savings for 3 months and 34.9 % has savings for more than 3 months.
The existence of savings is also affected by the composition of the household
A large part (43.9%) of single seniors over the age of 65 have no savings. However, despite the lower income, more than half of single seniors have savings - 36.3 % would have enough savings for less than 3 months, while 19.8 % would have enough for more than 3 months. Families with children are more cautious and the least number of households without savings was between couples with one child (26.3 %) and couples with two children (27.2 %). 39.8 % of couples with one child savings would be enough to maintain the current standard of living for less than 3 months, while 33.8 % - for more than 3 months.
Data obtained from the CSB 2020 EU-SILC Survey. It surveyed more than 6 thousand households and interviewed 11 thousand respondents aged 16 and over.
1 A quintile group is one fifth (20 %) of the number of the surveyed households grouped in increasing sequence according to the disposable income per one household member. The bottom - quintile group 1 includes one fifth of the households with the lowest income, while the top - quintile group 5 comprises one fifth of the households with the highest income level.
2 The at-risk-of-poverty threshold is 60% of the median equivalised disposable income. In 2019, the at-risk-of-poverty threshold for a single person household was EUR 441 per month, while for a household of two adults and two children - EUR 927 per month.