Households adjust savings in response to perceived income risk, study finds.
The study looked at 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 about 4-5% of their total wealth as a precaution. This amount stays consistent even when excluding assets like homes and business investments. This shows that people adjust their savings when they feel their income is at risk. The study also found that having more detailed information about households can help improve the accuracy of these estimates.