According to a new World Bank study, Pakistani households have a significant net worth in the form of residential buildings. According to the study, 80% of the country’s wealth is accumulated by the average Pakistani household between the ages of 45 to 65 in the form of residential houses, while other forms of wealth such as land, sustainability, business and agricultural values and financial assets remain stagnant in the life cycle.
According to the study, the average net worth accumulation is slower early in the life cycle and accelerates midway through the working years, roughly around age forty. The household income growth starts to outpace household consumption growth around that time, and the saving rate increases by 20 percentage points between ages 40 and 65.
The study suggested that programs that aim to encourage formal saving may be most successful among individuals in that age range. The government should provide opportunities for safe and long-term savings in the form of government-sponsored or subsidised old-age schemes for providing greater independence in old age.
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