Balearics households save 19.5% as budgets bite

Households across the Balearic Islands are putting aside an average of 19.5% of their income, above Spain’s 16.2% average. But the saving comes as many households cut back on everyday spending. The figures were published on 10 September by Unión de Créditos Inmobiliarios in its fourth Housing and Sustainability Observatory.

Using Spain’s average gross wage and an estimated net income, the report puts that proportion at about 300 euros a month. That is a Spain-wide calculation, not a separate monthly figure for the Balearic Islands.

Savings come with cuts

Only Castilla y León records a higher saving rate, at 20.6%. The Comunitat Valenciana reaches 20.0%, while La Rioja matches the Balearic Islands at 19.5%. The rate in the Canary Islands is 10.8%.

Across Spain, 84.2% of people say they save regularly. Yet 78.6% of households say they have reduced or dropped at least one expense over the past year, suggesting that saving often depends on cutting consumption rather than having more room in the budget.

Leisure is the first place households trim: 46% report spending less on going out, restaurants or other activities away from home. Another 39% have cut holidays or travel, while 34% say they have reduced food spending.

The squeeze has also reached the home. Some 29% have used less heating, 24% less air conditioning and 23% less electricity. A further 21% say cost has stopped them keeping their home at a comfortable temperature.

Housing pressure hits younger adults

Nearly three in ten respondents describe paying for their home as difficult or very difficult. Among people aged 25 to 34, that rises to 51%.

That age group also reports the highest share of income saved, at 22%. The study says the ability to save falls from age 35 as household commitments, financial obligations and other regular costs grow.

Topics: Housing · Politics · Economy · Palma

Source: Europa Press / Mallorca.com