The Possibility of Saving in Different Age Groups

According to the Provident Barometer, a recent representative survey commissioned by Provident, the working-age population between 18 and 35 years of age are regular savers, while the proportion of people in debt is highest among middle-aged people (36-50), and a significant proportion of those over 50 are barely making ends meet.

Significant savings are the privilege of the few: 8% of Hungarians are able to set aside at least one-third of their income, while 12% struggle with recurring debts. The results suggest that expert financial advice and the dissemination of financial knowledge can play a major role in improving the financial situation of families. 

Financial security is a privilege enjoyed by few: in a nationally representative survey conducted by Ipsos Plc. on behalf of Provident, examining the financial situation of Hungarians over the age of 18, only 8% said that they were comfortable with their finances and were able to set aside up to a third of their income. Four out of ten Hungarian adults (41%) run out of income by the end of the month – they are just as unable to save as those struggling with debt (12%). Together, these two groups make up more than half of the adult population in Hungary. The relative majority of savers (38%) are only able to put a fifth of their income into some kind of savings scheme.

This is particularly interesting in light of the fact that, according to recent Eurostat data, Hungarians are among the most diligent savers in the EU in terms of average savings: while Hungarian households achieved an average savings rate of 18% in 2024, the same figure for the eurozone was only 15%. Our compatriots have been consistently among the leaders since 2018, and last year only the populations of Slovenia, Germany, and the Czech Republic showed a greater propensity to save. However, the average does not accurately reflect the details: data from Eurostat and the Provident Barometer suggest that the outstanding Hungarian savings indicators characterize the financial situation of a relatively narrow segment of the population.

The research data also showed that there is a close correlation between the ability to save and age. Those living comfortably and regular savers are predominantly aged 18-35, while most of those struggling with debt are aged 36-50, and among the 50+ generation, it is most common for their income to run out by the end of the month.

For those who are able to save, the expected return (31%) clearly carries the most weight in their savings decisions, but the flexibility (30%) and security (29%) of the savings form are equally important.

Among the forms of self-provision, life and accident insurance (30%), pension insurance (27%), and health insurance funds (27%) are the most popular, but age also plays a significant role in the decision. Among 36-50 year olds, pension insurance is clearly in the lead, while among 18-30 year olds, health funds and home savings are in the top two places, and among the 50+ age group, a relative majority selected the “none of the above” option.

The survey sought to assess the direction of savings and investment by asking about an imaginary situation: what would you do if you suddenly came into a large sum of money? As it turned out, real estate remains the most popular form of investment (42% ranked it first), followed by gold (31%), forint-based savings (29%) and foreign currency (20%). Stock investment accounted for 10% of the responses – the same percentage as various cryptocurrencies – slightly ahead of investment funds (9%).

"In our experience, savings habits are closely linked to income levels, but family patterns and other factors that influence financial awareness, such as education and the role of advice, can also be very important. The Provident Barometer also showed that age and typical life situations have a decisive influence on the savings decisions of people who are otherwise in the same or similar financial situations. It also revealed that there is a great need to improve the financial awareness of the older generation, which is why our company places a strong emphasis on their training," Márta Pálfalvi, Provident's director of corporate relations and communications, said.