02.08.2022
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One in four Poles has no savings at all, one in three does not put money aside
Only a third of Poles (29 per cent) regularly save money. In addition, nearly half of savers keep their financial resources in cash - according to the study "Saving in the face of high inflation" carried out on behalf of Bank Millennium.
In times of soaring product prices and turbulence in the economy, the issue of putting aside part of one’s earnings is a big challenge for many Poles. A quarter of respondents (26 per cent) admit that they do not have and do not accumulate savings. As the main reason for this state of affairs, they point to too low earnings (57 per cent of responses). Another reason is the lack of saving skills (13 per cent), and the third one is the lack of income (12 per cent). 7 per cent of respondents do not save because they do not feel the need to do so.
One third of Poles (33 per cent) currently do not save money – in this cohort, only one in five persons (21 per cent) declared in the Bank Millennium survey that they had already saved capital, the rest (79 per cent) did not have savings and did not save. This attitude is more often shown by people living alone (39 per cent) than respondents who live in at least two-person households (24 per cent).
- Accumulating and multiplying capital is an important skill, especially useful in times of a more difficult economic situation. Setting aside part of your stable income is one of the basic methods of creating a personal financial nest egg. The process is long-term, requires regularity and proper placement of savings. However, even small amounts, but regularly put aside, are a step towards building the so-called financial cushion, which is of great importance for the security of personal finances – said Robert Chorzępa, head of the Savings Products Department at Bank Millennium.
When asked about the saving strategy used, Poles most often indicate that they set aside part of their earnings whenever such an opportunity arises (39 per cent of respondents). Nearly a third of those polled (29 per cent) regularly allocate a fixed amount for this purpose every month. 19 per cent. Poles accumulate money when they plan a larger investment or expense related to, for example, vacation, school starter kit, buying a car or a phone. One in ten (9 per cent) invests surplus money.
Savers most often indicated that they kept their money in cash (44 per cent of responses). The next positions were a current account in the bank (43 per cent) and financial products such as deposits or savings accounts (43 per cent). Investing in real estate and investment funds is chosen by 9 per cent of people. The same number of respondents (9 per cent) put their savings in retirement accounts, e.g. IKE, IKZE, PPK. The list is closed by stocks (7 per cent) and bonds (6 per cent).
The greatest propensity to store saved money in cash is shown by people aged 18-24 (54 per cent). Interestingly, they rarely use bank savings products, such as a deposit or savings account. Only 28 per cent of the youngest participants of the survey declared the use of this type of banking solutions, while on average for all age groups the per centage is 43 per cent.
- "The high number of Polish men and women storing their savings in cash may be the result of the uncertainty accompanying us in recent years, low interest rates, but also the lack of reliable financial education. Meanwhile, keeping savings in cash carries the risk of losing their real value. That is why we encourage customers to use increasingly better-interest, safe banking products, such as deposits or savings accounts – says Robert Chorzępa, head of the Savings Products Department at Bank Millennium.
According to the study "Saving in the face of high inflation", the main motivation for putting money aside is financial security for a rainy day (60 per cent of responses). 44 per cent of respondents save to cover unexpected expenses, and a quarter (27 per cent) accumulate money for holidays. Poles also pointed to the need to save money in connection with investments, such as renovation and furnishing of an apartment (24 per cent) or expenses, e.g. for a car (18 per cent). Only 12 per cent of respondents save for future retirement.
The vast majority of savers (71 per cent) can claim accumulating a financial safety cushion of up to six months' salaries. Most often, however, these are amounts corresponding to the sum of earnings from one to three months (29 per cent). Less than a month's salary was set aside by 22 per cent of respondents. Nearly one in five (18 per cent) declares that they have savings in an amount higher than their annual salary. Although most Poles try to save money, as many as 40 per cent admit that the amount of their savings has decreased since the beginning of the year. The same level of accumulated capital is maintained by 30 per cent. On the other hand, another 30 per cent declare that the amount of their savings has increased.
Survey conducted for Bank Millennium on the Ariadna panel in July 2022. Nationwide sample N = 1070 people aged 18 years and above, representative of gender, age and size of the place of residence. Method: A survey conducted using the online survey method (CAWI).