How long would a Peruvian survive if they lose their main source of income?

The coronavirus pandemic severely hit the pocket of the family economy in Peru, where more than 70% of the labor force is informal, according to figures from the National Household Survey (Enaho). During this three-year period —interspersed quarantines and habitual political problems—, lThe purchasing power of citizens has been vulnerable to these emergency situations which, after all, has made them resilient. However, the question arises: how long would be the time that a Peruvian in case you lose your principal source of income without borrowing money?

If I lose my income, how long can I cover my expenses?

According to the National Survey of Financial Capabilities, made by the Superintendency of Banking, Insurance and AFP (SBS) in 2022, it is estimated that one in three Peruvians, that is, 33%, could not survive for more than a month if you lose your main source of income.

“That’s a worse indicator than what we had in 2019, when 28% of the people said they could not survive for more than a month,” said Juan Carlos Chong, head of the SBS, during a conference for World Savings Week.

Factors that influenced the results

Chong adds that this survey allows us to see an evolution over time of how financial capacities are going. “They have been difficult years after the pandemic, some international crises and political problems in the country that deteriorated the purchasing power of the population, which was also linked to the decrease in Gross Domestic Product (GDP), he increase in unemployment in some sectors and decrease in average income. All these factors have had an impact on the results we have had,” said the official.

What is financial resilience?

According to the SBS, financial resilience refers to the ability of people to overcome a situation in which your income or assets are seriously affected.

The aforementioned survey, carried out by Ipsos, also showed that 85% of Peruvians recognized that their income was not enough to cover their expenses sometime during the year 2022. Also, it is estimated that some three-quarters of those surveyed would find it difficult to collect S/1,000 in the coming days, said Guillermo Loli, senior director of the pollster, in his presentation.

How many Peruvians saved during the year 2022?

The survey also indicates that only two out of five Peruvians (42%) saved in the last 12 months, mostly, they did it at home and, to a lesser extent, in a deposit account or mobile wallet. In addition, it concludes that, in the event of an emergency, 33% would resort to her savings and another 33% to her family and friends as the main source of money, Loli explained.

How many Peruvians have an average level of financial education?

According to the survey, the 46% of the Peruvian population has an average level of financial education and 13% have an adequate level, while 41% lack financial capabilities.

The purpose of the survey is to find out the levels of knowledge, attitudes and behaviors of Peruvians in relation to financial issues, as well as to identify changes produced with respect to the years 2013 and 2019. While the level of financial knowledge remained similar, the level of financial behavior registered a setback, but progress was observed corresponding to the financial attitudes.