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Europe’s Cash Savings Lose Ground As Inflation Outpaces Deposit Rates

by THEFUTURE.TEAM

September 15, 2026

Doing nothing with your savings is not a neutral choice. In Europe, it can mean losing purchasing power over time. Revolut’s European Wealth Drain Index, based on 20,007 adults across 20 EU member states and official deposit and inflation data, shows households holding cash while its real value declines.

Cash Is Losing To Inflation

In 12 of the 20 markets studied, average one-year deposit rates are below inflation. Across the sample, deposits pay 2.76% on average, compared with inflation of 2.94%.

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Revolut estimates households forgo €638 per €10,000 each year by keeping money in cash, compared with the MSCI Europe ETF’s 10-year annualized return of 9.06%. Across €6.3 trillion in liquid deposits covered by the study, that represents roughly €422 billion a year not flowing into investment.

Why Savers Stay Put

Two-thirds of respondents have never switched banks for a better rate. Among them, 26% prefer their existing bank, 18% see little difference and 15% do not know where to look.

Financial literacy is another barrier: 46% misjudge their inflation-adjusted returns, while 19% do not realize inflation affects cash. One in five Europeans has no savings.

Revolut Favors Lower Investment Barriers

Among non-investors, 29% cite perceived risk as the main barrier and 27% cite lack of knowledge. Revolut says active EU retail investors on its platform increased 56% year over year.

“Forced enrolment doesn’t tackle the root causes of inertia: perceived risk (29%) and a lack of knowledge (27%),” said Rolandas Juteika, Revolut’s head of wealth and trading. He said the median first-time EU investment on the platform is €18.

Europe’s Savings Divide

Central and eastern Europe has some of the widest gaps between inflation and deposit rates, led by Bulgaria at 2.3%, Slovakia at 1.7% and Lithuania at 1.3%. Meanwhile, 51% of respondents in both Bulgaria and Romania said they would consider starting to invest.

Germany has €1.9 trillion in deposits and France €588 billion, while fewer than 40% of respondents in Denmark and Sweden understand how inflation affects long-term wealth.

Brussels Wants Savings To Fund Investment

The findings come as the EU seeks to direct more private savings toward European investment. The European Commission estimates €10 trillion in household savings are held in bank accounts, while the Draghi report estimated Europe needs an additional €750 billion to €800 billion in annual investment by 2030.

The Savings and Investments Union, adopted in March 2025, aims to encourage investment through simpler savings accounts, pension reforms, securitization rules and changes affecting banks and insurers. The Commission estimates the measures could unlock as much as €470 billion in additional investment.

Von der Leyen has called for an agreement by the end of 2026, ideally involving all 27 member states, while leaving open the possibility of moving ahead with ready countries.

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Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.