Coronavirus crisis: Luxembourg is confident
Three in four Luxembourg residents (75%) are confident we will master the coronavirus crisis, according to the latest survey conducted by ING in Luxembourg. The survey also covered personal finance topics.
Participants in the survey were asked “How confident are you, that we in Luxembourg will master the coronavirus crisis well?” 23% answered “very confident” and 52% “pretty confident”. Only 8% of the residents felt little or not confident.
The devil is in the details: younger respondents are more confident. 80% of those aged between 18 and 34 years old stated they were confident. Respondents aged 35 to 54 were 8% less confident, i.e. 72%. From 55 years old onwards optimism picks up again: 77% were confident.
In total 78% of men and 73% of women look with confidence to the future.
More cautious and frugal than before
Households in Luxembourg are already feeling the impact of the coronavirus crisis on their personal finances: 61% of Luxembourg residents stated living more frugally than before. The coronavirus crisis has led 56% of respondents to feel more concerned about their financial situation. A whole 32% state having already had negative consequences of the coronavirus crisis on their personal finances.
Emergency funds in the spotlight: 56% will pay more attention to building one and 17% will have to tap into their emergency fund due to the coronavirus crisis. Ingrid Ballesca, Lead Market Analyst at ING: “Luxembourg households have always been frontrunners in savings compared to other countries. This is surely an advantage in the current crisis.”
The importance of the emergency fund
86% of the respondents currently have savings in their household. Of those, 13% have less than a month’s income; 17% have between one and three month’s income. On the other side of the spectrum, 20% have more than 12 month’s income in savings. “The basic rule of thumb is: emergency fund = 2 to 3 times your monthly income. I would suggest to every household to plan their finances based on an income-cost analysis and in such a way that systematic savings are possible. Ideally, a portion of the income can be transferred automatically to the savings account upon receipt of the salary”, explains Ingrid Ballesca.
About the survey
This representative survey was conducted in Luxembourg by TNS ILRES on behalf of ING Luxembourg. The survey involved 500 people aged 18 and over and ran from 27.04.2020 to 04.05.2020.
Operating in the Grand Duchy of Luxembourg since 1960, ING is a universal and accessible bank with well-developed and user-friendly digital channels, appreciated by our retail, private and wholesale banking customer base, as well as a more personal contact through our network of branches. With over 100,000 customers, ING is one of Luxembourg’s top 5 banks and one of the country’s top 10 brands (source: 2018 KPMG Luxembourg Customer Experience Excellence Report).
Our aim is to empower people to stay a step ahead in life and in business. We believe the role of a financial institution is to support and promote economic, social and environmental progress at the same time as it generates healthy returns for shareholders.
Always at the cutting edge as regards digitisation, we were the first high-street bank to launch an online account in Luxembourg. With over 800 employees in the Grand Duchy (700 of whom are at our head office: ING Lux House) and thanks to the combination of our local presence and the strength of a robust multinational like ING, we offer our personal and business customers a wide range of solutions through the channel of their choice.
We actively contribute to the growth of the local economy, as demonstrated by the significant rise (+16%) in lending volumes during 2017. Our mortgage portfolio continued growing in 2017 (+15%), breaking the EUR 2 billion barrier for the first time. On both sides of our balance sheet, we posted double-digit growth (+18%) in 2017, reaching EUR 18.5 billion.
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