Russians met a coronavirus pandemic without savings. By results of poll of the analytical centre NAFI, almost half of citizens did not have the nest egg to the beginning of the isolation. Now the situation has worsened. To those who did not have the savings added to those who “ate” their cash reserves during the home stretch and lack of work. Meanwhile, the critical situation with the savings is probably not the lowest point of their fall. The population continue to scare the second wave of the pandemic and if it will cover Russia, people will not be able to afford even the purchase of gloves and masks, not to mention the payment of “communal” and repayment of loans.
45% of the population have little or no had savings by the beginning of the pandemic coronavirus, according to a survey by NAFI. “In the end, lack of savings or their lack of volume, along with external circumstances (loss of a job or other source of income), led to the fact that every second Russian has faced serious financial difficulties during a pandemic,” said the study.
According to the survey, savings of Russians, in case of loss of work or income, would on average only 63 days. As is well known, strict quarantine restrictions lasted even longer this time.
NAFI Data are correlated with other assessments of financial “airbag” citizens. So, according to the forecasts of the Central Bank, in 2020 the Russians will be able to save for a “rainy day” a total of 1.3-1.5 trillion rubles. Meanwhile, last year the total savings of our citizens amounted to 2.1 trillion roubles, a decrease compared with 2018 the year of 14% — while population has accumulated funds to 2.5 trillion rubles. The Central Bank relates this trend with the stagnation of real incomes in the current year and the pandemic coronavirus.
“Obviously, to restore the savings after three months of isolation, reduce wages and employment, the Russians will be difficult. And in the case of the second wave of the pandemic available savings of the population will decline at least another 25%. The decrease in cash will make our citizens even to save more and learn to plan costs,” — said the first Vice-President of “OPORA Russia” Paul Segal.
in short, most families have to live from paycheck to paycheck, and while trying somehow not to get into loans even deeper. The poorest families are likely to accumulate debts for communal (fines and penalties postponed until 2021), trying to keep at least something in case the second wave of the pandemic, if that happens. Those who have higher income levels, but financial problems still there, obviously, will look for alternative ways of generating income — for example, learn to provide other various services online (tutoring, design, accounting calculations), that is not so much dependent on a single source of income.
“to Save now is not easy, even if there are any excess funds: the Bank rate is very low, the money on Deposit will inevitably depreciate, stocks are unstable, and funded insurance programs do not have reliable warranties, says the chief analyst of TeleTrade Peter Pushkarev. In addition to the formation of financial “safety cushion” in case of emergency, is now profitable to invest in good education of children, and in self-education. For example, to complete courses for the development of new professional skills to be more versatile and adapted to changing circumstances”.
However, according to the latest data of the Central Bank, those Russians who still kept their financial reserves, prefer to preserve their traditional way – carry on Bank deposits. In any case, the total volume of ruble deposits in may rose by 1.9%.
“the Banking statistics are probably not very well reflect the real state of Affairs, says these data Petr Pushkarev. —There is a large proportion of citizens who prefer to keep money in cash at home, because I do not trust banks or to be able in case of force majeure, quickly use the “stash”. Here’s just the percentage of citizens likely to be “eaten” their savings”.
the majority of people are not ready financially for another period of self-isolation, also, is not ready for business. Therefore, if the second wave of the pandemic still served our country, the number of Russians who do not will savings will increase significantly, says a leading analyst of the Forex Optimum Ivan kapustyasky.
he predicted that after the pandemic, many of our compatriots will be forced to think about what you need to have at least some supply of money to survive such force majeure, and begin forming a personal financial reserve. “Such reserve shall be not less than 3 monthly household expenses, including the cost of loan payments. The money should be kept in liquid instruments that, if necessary, to be able to withdraw them without loss,” advises the analyst.
the Cash reserves of the Russians before the pandemic
45% had no savings
29% had a small financial cushion.
26% had sufficient savings
Source: analytical centre of the NAFI