According to Allianz, over the past 20 years, a gap between the poorer and richer regions of the world is still impressive being 11.2 percentage points on average.
An increase in the flow of funds was noted exclusively in US households. Thanks to tax reform, new savings there have grown by whopping 46%; two-thirds of all savings in industrialized countries come from the United States.
Although American households have increased demand for securities, all other households prefer bank deposits and securities. In Western Europe, for example, two-thirds of new savings were sent to the banks. Disposition to presumably safe assets is expensive: the losses suffered by households as a result of inflation are expected to rise to nearly 600 billion euros in 2018.
Many people save more because they expect a longer and more active retirement life. However, they avoid exactly those products that offer effective protection against old age, namely, insurance and annuity. A low-yield market seems to undermine long-term savings. But the world needs long-term investors and investors to cope with all the upcoming problems.
Due to a strong liability growth, net financial assets, i.e. the difference between gross financial assets and liabilities, by the end of 2018 has decreased by 1.9% to 129.8 trillion euro. In particular, there was a sharp decline in countries with emerging economy, net financial assets dropped by 5.7% (industrialized countries: -1.1%).
Photos are from open sources.