The disposable income of Dutch households was 2.4 percent higher last year than in 2019, according to figures from the Central Bureau of Statistics (CBS) on Friday. However, the corona pandemic made it difficult for them to spend that money, which meant that households put almost a quarter of that in a savings account. A year earlier, the so-called savings ratio was still just under 17 percent.
Disposable income rose mainly due to an increase in wages. Collective labor wages rose by an average of 3 percent in 2020, the largest increase in twelve years. One possible cause was the tightening of the labor market until the beginning of last year. Compensation of employees increased in total by EUR 15.4 billion to EUR 393.4 billion. That equates to an increase of 4.1 percent.
The corona pandemic largely shut down the world, which was also reflected in the spending pattern of the Dutch. Households spent less on distant holidays and restaurant or theater visits, according to Statistics Netherlands. More was spent on food and stimulants.
Many Dutch households have started to save more because of the lower expenditure. At the end of last year, there was a total of 77.1 billion euros in the piggy bank, 33.8 billion euros more than at the end of 2019. The net investment in pension provisions decreased by nearly 1.9 billion euros to 25.3 billion euros. This brought the total to 102 billion euros.
Source site www.nu.nl