Savings: this misleading benchmark makes you aim too low
Hey, it’s Quentin. The wrong benchmark is an amount picked at random or calculated based on your salary: tailor your savings to your expenses, your plans and their timelines. In 2026, uncertainty and concerns about retirement are prompting many households to save more. Yet saving more isn’t enough if your money remains poorly allocated. The right goal: protect your budget today and prepare for your plans tomorrow.
Things to do without delay
- Write down your essential expenses for one month.
- Set an emergency savings amount that suits your situation.
- Separate money available for emergencies from money set aside for long-term plans.
- Compare the returns on your investments with inflation.
- Review your plan every three to six months, depending on your income and priorities.
A useful benchmark is based on expenses, not on a number of salaries you heard in passing. To estimate how much you save each month, you can calculate your savings rate, then adjust your reserve using this guide on how much to keep for unexpected expenses.
The financial benchmark that leads you to aim too low
It’s often said that you should set aside an amount equivalent to three or six months’ salary. That’s a shortcut: a safety reserve is better calculated based on essential expenses, which vary from one household to another.
A benchmark of three to six months’ expenses can be a starting point, depending on the stability of your income, your housing situation and your dependants. It’s not a universal rule: the goal is to be able to absorb an unexpected expense without selling an investment at the wrong time.
The opposite trap is to stop at this reserve and assume that everything else can sit in a low-yield account. But a plan for ten years from now isn’t prepared the same way as an unexpected bill due next month: each time horizon calls for a different strategy.
What savings choices in 2026 show
Figures from an Ipsos survey released for 2026 put household financial assets at close to €6,500 billion. The same survey reports that 51% of respondents favour products considered safe, even if they pay little, while 30% say they prefer riskier investments.
The instinct to seek security is understandable. But if the return on your investment remains below inflation for a long time, your money may lose purchasing power. “Security also means preserving your options for tomorrow.”
| Your need | Useful benchmark | Action to consider |
|---|---|---|
| Unexpected expense or drop in income | A few months’ essential expenses, depending on your situation | Keep an amount accessible and with little exposure to fluctuations |
| A plan for a few years from now | Amount needed and target date | Choose an option that fits the timeline and the level of risk you’re willing to accept |
| Retirement or a distant goal | Estimated gap between future income and expenses | Set up a diversified strategy and review it regularly |
Build your savings around your goals
Start by defining a specific financial goal: covering a period without a salary, paying for renovations or preparing for retirement. A clear goal turns an abstract amount into concrete steps and helps you choose an appropriate investment.
If your income is irregular, a larger reserve may be useful, depending on your situation. If your job is stable and your expenses are flexible, you may be able to aim for a more modest reserve and direct some of your savings towards the long term sooner.
For example, Lina, an employee, had decided to keep a year’s salary in her account for fear of running short. After listing her essential expenses, she set a more realistic reserve and gradually allocated the surplus to her long-term plans.
A three-step process to get it right
- Step 1: add up your monthly essential expenses: housing, food, transport, insurance and debt repayments. Separate these from expenses you can cut quickly.
- Step 2: set the amount of your reserve, taking into account the stability of your income, your obligations and your possible access to other resources.
- Step 3: allocate the surplus according to your timelines. Compare fees, accessibility and risks before choosing where to invest, then review your financial plan when your circumstances change.
Diversification matters too: concentrating all your money in one product or one category can expose you to unnecessary risk. On the other hand, adding investments without understanding how they work doesn’t automatically make your strategy more robust.
Don’t confuse accessible savings with savings that work for you
In 2026, concerns about the future of retirement are also fuelling the desire to save. In the survey cited, 81% of respondents say they are concerned about the retirement system and 60% support the development of pension funds. These figures reflect a concern, not a one-size-fits-all investment instruction.
Keep an accessible amount for emergencies, then consider the rest in light of your time horizon, risk tolerance and fees. Before choosing, ask yourself whether you understand how the product works and whether you could handle a temporary drop in its value.
The decisive benchmark, then, isn’t a number you hear everywhere, but the balance between emergency savings, your plans and your future. This allocation gives direction to your savings rate and protects your budget without forcing you to tie up all your money.
Three questions to help adjust your savings benchmark
How much should I keep in emergency savings?
A benchmark of a few months’ essential expenses can be helpful, but the amount depends on the stability of your income, your expenses and your family situation.
Should I save more if inflation rises?
Not necessarily by simply increasing the amount you set aside. Also check the real return on your investments and allocate your money according to your needs and timelines.
What should I do with the surplus once my reserve is built up?
First define your goals and their time horizons, then compare your options in terms of accessibility, fees and risks. Avoid choosing an investment you don’t understand.
Thank you for your interest; best wishes, Quentin
