Savings: Toward a more structured management of finances

Long dominated by a precautionary logic, Moroccans’ savings are gradually evolving toward a more structured approach focused on life projects, such as financing children’s education, purchasing property, preparing for retirement, protecting loved ones, or transferring wealth.

“This change, which reflects a broader evolution of financial culture, revealed its full importance during the recent crises Morocco has experienced”, says Kanza Amor, Director of BMCI Assurance. Indeed, they showed that savings are no longer merely a financial comfort, but a real tool of economic and social resilience.

Households with structured savings fared better during periods of uncertainty, whether facing lower income, rising cost of living, or an unexpected expense. This shows that savings now act as a buffer capable of absorbing shocks without immediately resorting to debt.

Overall, Moroccans’ level of savings is significant. However, “it remains largely underexploited in its structure, since a large share of savings is concentrated in very liquid and low-yield instruments”, Amor notes. In a context marked by inflation, the real preservation of the purchasing power of these savings is a major issue.

When inflation exceeds the return on an investment, savings progressively lose value, sometimes almost imperceptibly. Instead of securing their capital, households suffer a form of silent erosion of their financial assets over time.

The director of BMCI Assurance believes this does not mean one must automatically move toward risky or speculative investments, but rather learn to better segment savings according to needs and life horizons.

The challenge is to maintain a precautionary savings reserve that is available and secure, while directing medium- and long-term savings toward investments that offer greater performance and appreciation.

On building wealth

This is precisely where medium- and long-term savings solutions make all the sense, notably in bancassurance, thereby introducing a logic of more sustainable and effective wealth building.
If we take life insurance as an example, “this product can provide a savings discipline, progressive capital accumulation, preparation for life projects, a logic of wealth transmission, as well as a favorable tax framework”.

Yet it still suffers from a sometimes too limited perception, Amor points out. Many continue to associate it only with protection in case of death.

Moreover, life insurance and securities occupy a more or less comparable place in household wealth.

Amor adds an important clarification: “These two investments are not opposed; they are complementary. Life insurance now constitutes a real investment envelope allowing, depending on the saver’s objectives, access to safe instruments, but also to financial markets through unit-linked options. It is thus possible to seek better capital appreciation while benefiting from the tax and inheritance advantages specific to life insurance”.

This complementarity remains insufficiently known, while it precisely addresses the growing needs for diversification, wealth planning, and transmission.

Another important point: retirement savings must become a central pillar of any financial planning, especially with increasing life expectancy, changing family models, and growing pressures on pension systems.

Many people underestimate the level of income they will actually need in retirement. Yet, “without sufficient preparation, this transition can lead to a significant drop in living standards. The matter is all the more important because retirement is prepared over the long term. The earlier one starts, the more gradual and manageable the savings effort. That is the whole strength of long-term capitalization”, explains BMCI Assurance senior management.

A new model in sight

This logic holds for savings in general. Contrary to a widely held belief, building an effective strategy does not depend solely on income level.

Regularity, discipline, and time play a decisive role. Even modest amounts invested consistently can gradually form a significant capital.

“Provided that households benefit from better financial education and that professionals adopt a pedagogical approach to make savings more accessible, more understandable, and more concrete”, our source maintains.

In the medium term, several trends should redraw the savings landscape in Morocco: a rise in long-term savings, with greater awareness of issues related to retirement, health, and education; acceleration of digitalization of uses; personalization of solutions; and strengthening of financial education.

The sector’s development will depend as much on product innovation as on actors’ ability to make financial mechanisms more accessible, more understandable, and more useful in Moroccans’ daily lives.

How to protect your savings against inflation erosion

It is true that inflation causes a loss in the value of savings. In a volatile economic environment, the right approach is above all to diversify savings intelligently according to objectives and investment horizon.

Concretely, leaving all of one’s savings in low-yield instruments mechanically exposes one to a progressive loss of purchasing power. The challenge is therefore to seek a balance between security, availability, and performance.

This can involve life insurance solutions, diversified financial investments, or certain capital market–linked instruments.

The goal should not be to chase excessive returns, but rather to preserve the real value of savings.