The results of a non-representative survey by insurance company Allianz show that half of the Hungarian population consider themselves confident when it comes to money matters, but looking at the details, the picture is more nuanced. What is certain is that men have more income and therefore more savings.
Almost 80 percent of Hungarians live on the same or less money than they have in the past 2-3 years, and only 16 percent have managed to increase their financial reserves, the survey found. 77.4 percent of respondents said they have at most the same income as in previous years, while inflation has made their lives significantly more expensive.
According to the survey, just over a fifth of Hungarians (22.6 percent) saw their incomes rise. However, it is interesting to note that twice as many men reported an increase in income as women. However, this does not necessarily mean extra money for them to spend.
Tamás Bencsik, Director of Allianz Hungária Zrt. Head of the Personal Insurance Department of the Hungarian Insurance Group, stressed that the economic policy challenges (Covid-19, the Russian-Ukrainian war, inflation) have had a significant impact on savings and investments.
17.9 percent of respondents said that they had used up their previous savings to make ends meet, while 15.4 percent had no savings before and currently have none, which is most common among people aged 43-58.
Only 15.8 percent have increased their financial reserves and only 5.4 percent have increased their long-term savings for retirement.
When looking at gender, it is clear that almost three times as many men (24.4 percent and 9.4 percent respectively) have been able to increase their financial reserves, while twice as many women have used up their savings.
Around half of respondents (49.1 percent) think they are financially aware, but only 19 percent say they are fully confident.
Here again, the gender split is interesting, with men more confident than women in claiming to be fully financial aware (24.2 percent compared to 15.1 percent). Only 11.5 per cent of respondents prefer not to be or not at all aware.
The importance of financial planning is somewhat underlined by the fact that two-thirds of respondents (67.4 percent) have an emergency reserve, but the fact that a third do not is still a high proportion. Among respondents, the most familiar self-care schemes are life insurance (71.3 percent), accident insurance (59.9 percent) and independent pension savings (59.5 percent), as well as health insurance (56.3 percent). Monthly fixed bank savings are known by 49.1 percent and property investment by 47.7 percent.
According to Allianz experts, there is room for improvement in financial awareness in all countries where the insurance company is present. At the end of March, the insurance company also launched the “Start making Cents, i.e. Self-care” campaign in Hungary, aimed at raising awareness and knowledge on the topic.
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