The unequal socioeconomic impact of the pandemic between the differences between the population and the income bracket, among so many different metrics, can also be observed from the perspective of investments.
A survey by Anbima (Brazilian Association of Financial and Capital Market Entities) in partnership with Datafolha shows that in 2020 the percentage of people in the C class who claimed to be investors fell. In classes A and B, there was an increase or stability in this percentage.
Last year, 30% of respondents from class C said they had some type of investment, compared to 40% in 2019. At A and B, the percentages rose from 61% and 53% to 71% and 54%, respectively.
The survey interviewed 3,400 people from the economically active population in all regions of the country between November and December last year. The margin of error is two percentage points.
The data also reveal that the average family income in class C has fallen back to the level of 2018, to R$ 2,800 in 2020, compared to R$ 4,400 in 2019. Meanwhile, the average in class A went from R$ 17 thousand to R$ 21 , 1 thousand, and at B, it went from R$6,600 to R$7,400.
|Share of the investing population (in %)|
|Average income (in R$ thousand)|
Source: Anbima and Datafolha
Claudia Yoshinaga, coordinator of the Finance Studies Center at FGV EAESP (São Paulo School of Business Administration of Fundação Getulio Vargas), highlights that the lower classes were crushed at both ends in the pandemic, with a drop in revenue due to the loss of employment and income, combined with an increase in expenses caused by inflation on basic items in the consumption basket, such as food and energy.
“Anbima’s research shows a sad result, but, somehow, already expected”, says the coordinator. According to the expert, a study carried out at the end of last year by the Center for Studies in Finance at FGV reached conclusions similar to those of the Anbima survey, pointing to a loss of income, in proportional terms, more pronounced among those with less purchasing power. .
“The upper class population, on the other hand, has even managed to be more investors, because it is a portion that, in general, kept their jobs, and somehow began to spend less, saving on fuel, entertainment, food”, says Claudia.
Anbima’s survey also shows that 55% of respondents did not keep any money in 2020, nor did they have previous reserves. Of this group, 74% were from class C, 24% from B, and only 2% from A.
Budget constraints caused by lack of money, low wages and unemployment lead the justifications for the absence of savings.
“Those who didn’t have a reservation had to get into debt, used the overdraft, the credit card, because they were the only ways to close the month,” says Marcia Dessen, CFP financial planner and director of Planejar (Brazilian Association of Financial Planners) and columnist of sheet.
Claudia, from FGV, also says that, given the high cost that the person incurs in charging interest in these modalities, at the time of the squeeze, it is better to get rid of any type of investment before resorting to disadvantageous options in banks. “Hardly an investment in the market will yield as much as the interest charged on the credit card or overdraft”, says the coordinator.
For those who had to redeem some amount due to the pandemic, the recommendation of the director of Planejar is to restore the reserve as soon as possible, at the pace, of course, that the budget allows. “And for those who didn’t have it yet, let them do it too, because the financial reserve brings great tranquility, a feeling of security,” says Marcia.
The planner adds that while Covid’s case numbers have been declining, the scenario is still challenging, with inflation and interest rates rising and elections in 2022 increasing political uncertainty.
In this environment, when considering a reserve that brings some financial comfort, she says that the ideal is for the person to concentrate on post-fixed fixed income assets, linked to the CDI and with high liquidity. “These are applications that have the lowest market risk, in which the investor always has a little more at the end of the month”, he says.
Among the main alternatives with these characteristics, she points out the Treasury Selic government bonds, which follow the yield of the basic interest rate and which can be traded on the Treasury Direct online platform, as well as the CDBs indexed to the CDI, and the real estate credit bills and agribusiness (LCIs and LCAs) that offer tax exemption to individuals.
DI funds from large banks can also be an option, as long as the management fee does not exceed 0.30% per year, recommends the expert. “If someone puts the financial reserve in shares, they can sell whenever they want, but the problem is that the price may not be the most adequate, as is the case now”, says the director of Planejar.
According to the expert, good market practices indicate that the ideal is that the emergency reserve corresponds to about six times the monthly budget. That is, if the income is R$3,000 per month, the financial reserve should be R$18,000.
The idea is that if a person loses his job and has no income, six months is the average time it would take him to relocate.
If the savings are 10% of income per month to allocate to the formation of this mattress, the time it takes a person to reach the adequate level of comfort is approximately five years, says Sandra Blanco, chief strategist at Órama.
“We know that, even with a lot of discipline and cutting costs, we are in a difficult time and maybe it will not be easy to make this economy”, recognizes the strategist. Anyway, she reinforces that having control over the day-to-day budget is essential within a financial planning, even so that you can keep in mind what needs to be done to achieve some savings.