More than half of Peruvians spend more than they earn and struggle to cover basic monthly expenses, according to a financial wellbeing study presented by Ipsos Peru for Banco Falabella. The research reveals that high informality and tight household budgets leave the majority of workers without financial cushions.
Financial Wellbeing Study Reveals 53% Spend More Than Than They Earn
Financial wellbeing remains limited across Peru despite broader access to banking products, as persistent structural gaps and low real incomes leave households vulnerable. An exhaustive study on financial wellbeing developed by Banco Falabella with the support of the Asociación de Bancos del Perú (Asbanc) and Ipsos reveals that 53% of Peruvians report spending more than they earn on a regular basis when asked how frequently they spend more than they take in, answering always, almost always, or sometimes.
The data underscores a fragile economic reality where daily survival outpaces long-term financial health. Additional findings from the study note that 58% of Peruvians state that their money does not reach to the end of the month, and 55% have had to resort to their savings to cover monthly expenses. Furthermore, only 41% have a savings account, and 4% maintain a term deposit, while just 1% invest in mutual funds.
Informal Labor Markets Drive Daily Vulnerability and Debt
The root of this widespread financial strain lies in Peru’s large informal workforce, which creates highly unpredictable income streams for millions of households. When faced with shortfalls, citizens turn to the formal banking system, personal loans from family and friends, or temporary side jobs known as “cachuelos” during specific months.
Researchers emphasize that this lifestyle reflects immediate survival rather than discretionary overspending. Carolina Trivelli, a senior researcher at the Instituto de Estudios Peruanos (IEP), explained that this 53% segment opts to get into debt within the formal system while also borrowing from relatives or friends, reflecting that the vast mass of workers in the country is informal and their incomes can be highly variable over time.
Carolina Trivelli, Senior Researcher at the Instituto de Estudios Peruanos, noted that that result does not mean that money does not last all month for that 53%, but it does reflect that Peruvians live very much day-to-day and have little financial cushion.
Complementing these insights, Javier Álvarez, senior trend executive at Ipsos Perú, pointed out that the reality of the local labor market makes traditional concepts of extended leisure unattainable for the general population. Trivelli also noted that depending on family and friends is extremely demanding because if a shock occurs that affects everyone, people have no way to help each other.
The study additionally revealed that 52% of respondents reported having saved nothing in the past 12 months. Of that group, the vast majority—87%—attributed their lack of savings to an economic reason, such as having expenses that prevent saving, an insufficient income level, unemployment, or ongoing debts. Meanwhile, nearly half of respondents, or 47%, stated they rarely, never, or almost never keep any track of their income and expenses, though 52% said they always or almost always meet their savings goals.
Lack of Savings Leaves 62% Unable to Cover Three Months Without Income
When survey participants were asked how long they could cover their usual expenses without asking for a loan if they stopped receiving income immediately, 12% replied less than a week, and 25% said they could endure more than a week but less than a month. More critically, a total of 62% of Peruvians would not be able to cover their expenses for even three months if they lost their jobs. This financial fragility is particularly pronounced among individuals with basic education and informal workers.
Javier Álvarez, Senior Trend Executive at Ipsos Perú, explained that it is always said—at least that is what one reads—that wealth is a function of how many months or how long a person can live without receiving income, but what is actually seen is a constant need to keep generating income, meaning the concept of a sabbatical year does not work for Peru.
Economist Giovanna Prialé reinforced these findings, stating that Peru is a country with high informality and still-low real incomes, where many people live day-to-day. Prialé observed that very few people can live without working, creating immense pressure on citizens to generate daily income just to survive.
Beyond material vulnerability, financial stress takes a significant psychological toll. The Ipsos report revealed that 45% of respondents answered that thinking about their financial situation generates frequent anxiety or worry, while 46% stated that their financial situation limits their ability to do things that matter to them. Álvarez explained that this anguish originates from both economic scarcity and a lack of financial education to resolve temporary problems, leaving users deeply concerned about failing to pay debts or cover budgeted expenses.
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