Two out of Five Hungarians Have No Savings, According to New Research

Published: December 02 2023

A recent study conducted by OTP Bank has found that two out of five Hungarians have no savings. This highlights the importance of financial self-sufficiency and the challenges many people face in saving for the future.

Approximately 39% of Hungarians have no savings at all, while only 46% have savings in financial products. Some individuals rely solely on cash and current accounts for their savings, which accounts for 14% of the population. These statistics indicate that a significant portion of the Hungarian population does not have the means to save.

The study also revealed the different savings goals among Hungarians. The most common goal is to be prepared for unexpected expenses, which is prioritized by 34% of respondents. Other goals include saving for vacations and travel (25%), healthcare (21%), higher-value consumer goods, children's futures, and property renovations (all at 20% each), purchasing a car (12%), and saving for retirement (11%). These findings emphasize the various financial priorities of the population.

Interestingly, the study found that the majority of savers (77%) earn less than 400,000 HUF (approximately 1,100 EUR), indicating that saving is not limited to high-income individuals. Moreover, a significant proportion of savers (23%) have incomes above 400,000 HUF. This suggests that individuals across different income levels are prioritizing financial self-sufficiency.

The study also explored expectations around retirement, highlighting a recurring "retirement paradox." While 75% of respondents believe that the state pension will not be sufficient for their retirement, only 25% believe it will be enough. This discrepancy indicates a lack of confidence in the state pension system. Additionally, 69% of respondents believe that ensuring a decent standard of living in old age is the responsibility of the government, while only 29% believe it is an individual responsibility.

One of the main messages from the study is the importance of starting to save for retirement early. The calculations show that by saving as little as 10,000 HUF (approximately 28 EUR) per month for 20 years, individuals can accumulate a savings of nearly 6 million HUF (approximately 16,600 EUR). Taking advantage of the government's retirement savings incentives can further enhance these results.

In conclusion, the study highlights the need for greater financial literacy and the importance of saving for the future. Regardless of income level, it is crucial for individuals to prioritize financial self-sufficiency and take steps towards building a secure financial future.

What did the research conducted by OTP Bank reveal about savings in Hungary? According to the research, nearly 40% of Hungarians have no savings at all.

How has the percentage of people with savings changed in the past 10 years in Hungary? The percentage of people with savings has remained relatively stable over the past 10 years. However, it slightly decreased from 48% in the previous year to 46% in the current year.

What are some popular short-term savings methods among Hungarians? Hungarians prefer easily accessible, short-term savings methods.

What are the main reasons for saving among Hungarians? The main reasons for saving among Hungarians include preparing for unexpected expenses, going on vacations or travels, and focusing on healthcare.

Do only wealthy individuals save in Hungary? No, the research shows that individuals across different income levels in Hungary prioritize saving for their future.

What is the "nyugdíjparadox" mentioned in the article? The "nyugdíjparadox" refers to the contradiction between the pessimistic expectations regarding the state pension system in Hungary and the lack of effort made by individuals to supplement their retirement income.

How do Hungarians perceive the state pension system? According to the research, 75% of respondents believe that the state pension will not be sufficient for their retirement. Only 25% think it will be enough.

Do Hungarians consider it the government's responsibility to ensure a dignified life for seniors? Yes, the majority of respondents (69%) believe that it is a specific responsibility of the government to ensure a dignified life for seniors.

How much do individuals save in Hungarian pension funds? The average savings per member in the OTP Pension Fund is approximately 1.5 million Hungarian forints.

Why is it important to start saving for retirement as soon as possible? Starting to save for retirement as early as possible is crucial for achieving financial security in old age. Even small, regular contributions can accumulate into substantial savings over time.

What are the potential benefits of utilizing the state support for retirement savings in Hungary? By taking advantage of the government's support for retirement savings, individuals can receive tax benefits, such as annual tax refunds, which can contribute significantly to their retirement funds.

What is the recommended starting amount for retirement savings in Hungary? According to the calculations presented, even saving 10,000 Hungarian forints per month can lead to a substantial amount, reaching nearly 6 million forints after 20 years of consistent savings.