Rising Inflation Sparks Interest in Financial Planning among Hungarians

Published: November 30 2023

The high inflation rates in Hungary this year have sparked interest in financial planning and self-sufficiency among the population. More people are recognizing the importance of regular savings, although a significant percentage are still unable to save even small amounts of money.

The high inflation rates have had a significant impact on the OTP Self-sufficiency Index, which measures financial consciousness and planning. This year, the index remains at the same level as last year, but the underlying factors contributing to the index have changed. Unlike last year, where government subsidies and rising utility prices influenced the index, this year's index is driven by the negative effects of high inflation on consumer spending.

Despite the increased interest in financial planning, the percentage of the population with savings has decreased slightly compared to last year. This is partly due to some families having to use their savings to cope with the effects of inflation. Unfortunately, about 40% of the population is still unable to save any money at all.

There is a paradox between short-term and long-term financial goals. While many individuals prioritize healthy lifestyle habits, exercise, and regular check-ups, few are able to consistently follow these principles. This is known as the health paradox. Similarly, the retirement paradox exists among those who solely rely on state pensions but express concern about their ability to live comfortably after retirement.

Experts recommend having at least 2-3 months' worth of savings to alleviate financial stress. The OTP Savings product, called Persely, has become one of the most popular savings options for customers, allowing them to save small amounts of money for a specific purpose.

The rising inflation rates in Hungary have prompted increased interest in financial planning and self-sufficiency. However, many individuals still face challenges in saving money, and balancing short-term and long-term financial goals can be difficult. It is important for individuals to prioritize emergency savings and seek financial guidance to navigate the economic uncertainties caused by inflation.

What is the recent trend among Hungarians due to rising inflation? Due to rising inflation, there is an increasing interest among Hungarians in financial planning and saving.

What is the OTP Öngondoskodási Index? The OTP Öngondoskodási Index is an index that measures the level of financial planning and savings among Hungarians. It currently stands at 37 points.

What factors influenced the OTP Öngondoskodási Index this year? Unlike the previous year, where government subsidies and increased utility bills had a greater impact on the index, this year the high inflation rate negatively influenced the index.

What percentage of the population is aware of financial planning and saving? 47% of the population in Hungary has heard of financial planning and saving.

What percentage of the population is able to save money? Only 46% of the population in Hungary is able to save money, a slight decrease from the previous year's 48%.

What are some common savings goals among Hungarians? The most common savings goals among Hungarians include unexpected expenses, healthcare expenses, and vacations. However, saving for education and the future of children has decreased this year.

How much can someone save by setting aside 10,000 Hungarian Forints each month for 20 years? By setting aside 10,000 Hungarian Forints each month for 20 years, someone can have a savings of 6 million Forints, taking into account the compounding interest. With government subsidies, even larger sums can be accumulated.

How much savings is recommended to reduce financial stress? According to experts, having at least 2-3 months of savings is recommended to reduce financial stress.

What is the OTP Persely service? The OTP Persely service is one of the most popular savings products offered by OTP Bank. It allows customers to save small amounts of money for various purposes.

How many people are aware of the changes in the szocho tax in Hungary? Only 3.4% of the population is aware of the changes in the szocho tax, while the majority is unaware of its magnitude and what can be done in such a situation.

How many members and assets does the OTP Nyugdíjpénztár (OTP Pension Fund) have? The OTP Nyugdíjpénztár has 266,000 members and assets worth one billion euros.

How has the performance of the OTP Nyugdíjpénztár portfolios been affected? Last year, apart from the risk-averse portfolio, all others ended with negative returns, causing dissatisfaction among some investors. However, the portfolios have recovered since then.

How are health and financial planning connected? Health is considered an important aspect of financial planning. The OTP Egészségpénztár (OTP Health Fund) has seen an increase in contributions and new members, indicating that more people are saving for their health.

What percentage of the population is contributing to the OTP Egészségpénztár? Contributions to the OTP Egészségpénztár have increased by more than 25% in the first three quarters of this year compared to the same period in 2021. The number of new members has also grown by 18%.