Survey reveals average precautionary savings at 4-6% of total wealth
The article explores how people save money to protect themselves from uncertain income changes. By analyzing data from Italian households, the researchers found that on average, people save 4-6% of their total wealth as a precaution. They also discovered that not considering factors like patience, risk aversion, and access to insurance can lead to biased results. The study focused on specific groups like older adults and business owners, who are often overlooked in similar research on saving habits.