Households across Europe save for a variety of reasons, from building wealth to preparing for unexpected expenses. A recent study found that nearly two-thirds of Europeans save for precautionary reasons, while half cite retirement as their primary motive. But how much of their disposable income do Europeans actually set aside? The answer varies dramatically by country.
According to the OECD, net household saving rates—the portion of disposable income not spent on final consumption—range from -9.3% in Greece to 14.7% in Sweden and Hungary, compared with an EU average of 8.1%. Greece stands alone in negative territory, meaning households there spent more than their net disposable income, drawing on savings or borrowing to finance consumption.
High Savers and Low Savers
Alongside Hungary and Sweden, net household saving rates exceed 10% in Czechia (13.7%), France (12.8%), Germany (10.3%), and the Netherlands (10.2%). Spain (9.2%) and Ireland (9%) also remain above the EU average. These figures reflect a mix of economic conditions, demographic structures, and cultural attitudes toward saving.
Among major economies, the United Kingdom (4.7%) and Italy (3.2%) post comparatively lower rates. In Latvia, the rate is zero—households spend every euro of their income. Slovakia (2%), Estonia (3%), Portugal (3.4%), and Lithuania (3.8%) all sit below 4%. Two Nordic countries also fall below the EU average: Denmark (7.5%) and Finland (4.4%).
Challenges in Measuring Saving Rates
“Computing household saving rates is very tricky, and comparing across nations is even trickier,” said Michael Haliassos, a professor at Goethe University in Frankfurt. He pointed to difficulties in measuring both disposable income and household consumption. Income is prone to misreporting or non-reporting, often due to fears over tax authorities or confidentiality concerns. Consumption, meanwhile, is difficult to capture in surveys, as it is subject to recall problems, and approaches to handling these measurement issues differ across countries.
The Case of Greece
Greece’s saving rate was mostly positive in the early 2000s, though it briefly dipped below zero a couple of times. Things changed sharply from 2010, as the sovereign debt crisis pushed the rate deep into negative figures, hitting its lowest point at -16.5% in 2013. It never really recovered. After edging back close to zero in 2021, Greece dropped again to -12.2% in 2022 and has stayed around -9% since. Haliassos noted that Greece registered the highest share of households with consumption above income in the EU at the depth of its crisis in 2015, and the second highest (after Romania) even around 2020 during the COVID-19 pandemic, when consumption opportunities fell dramatically.
Greece was one of the EU countries in 2024 where the average level of adjusted gross disposable income per capita was more than 20% below the EU average, according to Eurostat. This persistent income gap helps explain why Greek households struggle to save. For a broader perspective on economic trends across the continent, see our analysis of Poland and Portugal leading Europe in real income growth.
Determinants of Saving Behavior
Haliassos emphasized that there are no persistently high savers and low savers among EU countries; rather, they are subject to differential responses to various crises. “Key determinants of the saving rate are the age composition of the population and the responsiveness of different household age and occupational groups to the ensuing crises,” he said.
Research by Charles Yuji Horioka and Luigi Ventura found that the generosity of social safety nets affects the importance of individual saving motives. People tend to save less for retirement in countries with generous public pensions, and less for unexpected expenses in countries with strong public healthcare systems. This suggests that policy choices—such as pension reform or healthcare investment—can directly influence household saving rates.
The EU average remained broadly stable over the same period, with a sharp jump to 12.4% in 2020 as pandemic lockdowns left households with less to spend on. As Europe navigates ongoing economic challenges, understanding these saving patterns is crucial for policymakers. For instance, job insecurity in sectors like healthcare can affect household finances, as highlighted in our report on nurses quitting in Spain and across Europe.
Ultimately, the wide variation in saving rates across Europe reflects a complex interplay of income levels, demographic trends, social safety nets, and crisis responses. While some countries like Sweden and Hungary boast high saving rates, others like Greece continue to struggle, underscoring the need for tailored economic policies that address the specific challenges faced by each member state.
