Large savings go hand-in-hand with high debt

News - June 2020 - No. 5

Authors Danmarks Nationalbank
Subject household balance sheets
Type News
Year 2020
Published 8 June 2020
Pension savings in Denmark have increased sharply since the 1990s. Over the same period, Danish household debt has also risen strongly. On average, a kr. 100 increase in pension wealth leads to a kr. 26 increase in total debt. This is one of the conclusions of a working paper in which economists Andreas Kuchler and Henrik Yde Andersen, Danmarks Nationalbank, and Niels Lynggård Hansen, the European Stability Mechanism (ESM), have analysed extensive data on pension savings and household debt.