Overview of results concerning attitudes towards savings g To what extent do attitudes towards savings differ among Europeans?
Index 1. Feelings of (dis)comfort concerning savings 2. Readily accessible money 3. Economic effects on personal finance 4. Economic effects on savings behaviour 5. Spending behaviours Author(s) 6. Monthly spendings 7. Financial decision making Overview of results concerning attitudes towards savings Graphical illustrations of notable differences TNS NIPO A th ( ) Robbert Keller Frans van der Horst ING Client contact Ian Bright, Andrea Hansal 13 January 2012 TNS
Overview of results concerning savings attitude 13 countries will be compared in this report. Besides this comparison, this report also offers graphs reflecting the perception and attitudes of the European consumer towards savings. We decided together with ING that when discussing the European Consumer, Turkey is not included. Overview of results concerning savings attitude > 3
Feelings of (dis)comfort concerning savings Overview of results concerning savings attitude
Consumers in Luxembourg and the Netherlands feel most comfortable with their savings Looking at the top-two box of countries that feel (very) comfortable, it shows that consumers in Luxembourg and the Netherlands feel most comfortable with their current amount of savings. Feelings of comfort are notably low in Italy, but so are their feelings of discomfort. 10 9 8 7 6 Luxembourg Thinking about the savings you have identified above, which one of the following best describes your level of comfort with the amount of money you have available in savings? 8% 4 4 1 18% 32% 41% 2% Netherlands Poland Germany 8% 8% 3 31% 1 Romania 3 3 41% Austria 32% 1 28% 2 2 1 22% Spain 2 France 52% United Kingdom 3 3 18% 18% 2% 28% 2 1 1 Czech Republic Turkey 2 38% 4 18% Slovakia 6 1 Italy Very comfortable Comfortable Neither comfortable nor uncomfortable Uncomfortable Very uncomfortable Overview of results concerning savings attitude > Feelings of (dis)comfort concerning savings 5
Young people feel most comfortable with their savings Young Europeans feel most comfortable with their savings. We see a curve. Consumers aged less than 35 and older than 55 feel more comfortable with their amount of savings than consumers aged between 35 and 54. Differences between men and women are not obvious at first sight. However, looking at the toptwo boxes (very comfortable and comfortable) it h th t i E f l l f t bl about their savings than men. ith th i t f i th d shows that women in Europe feel less comfortable Thinking about the savings you have identified above, which one of the following best describes your level of comfort with the amount of money you have available in savings? 10 9 8% 10 9 8% 8 7 31% 28% 2 2 8 7 2 2 2 6 3 4 3 42% Very comfortable Comfortable Neither comfortable nor uncomfortable Uncomfortable Very uncomfortable 6 1 1 1 1 8% 1 18-24 25-34 35-44 45-54 55+ Differences by age 1 1 11% Male Female Total Differences by gender Overview of results concerning savings attitude > Feelings of (dis)comfort concerning savings 6
Readily accessible money Overview of results concerning savings attitude
Large differences between countries in readily accessible money Eastern European countries seem to have the lowest amount of readily accessible money. 10 9 8 7 6 Luxembourg How much money could you readily access in case of an emergency within one week to pay for a sudden expense such as a car break down or repair of a home heating system? 5 11% Netherlands 5 4 1 Austria 8% 11% Germany 1 3 3 1 1 1 18% 1 1 Spain United Kingdom 31% 2 21% 1 France 2 1 1 18% 1 1 11% 2 22% 8% Italy Slovakia Poland 1 1 22% 28% 2 21% Turkey Czech Republic 11% 11% 2 2 3 Romania 2 1 More oethan 1500 Euro* uo 1001-1500 Euro 501-1000 Euro 101-500 Euro 0-100 Euro I don't know *For countries not using the Euro, equivalent local currency amounts were used. Overview of results concerning savings attitude > Accessible money 8
The elderly have the largest amount of readily accessible savings The amount of money European consumers can readily access is positively correlated with age. Younger people have the least amount of money they can readily access. Men can more easily than women access over 1,000. Almost half of European male respondents can readily access over 1,000 in case of emergency. How much money could you readily access in case of an emergency within one week to pay for a sudden expense such as a car break down or repair of a home heating system? 10 10 9 2 9 8% 31% 31% 8 4 8 7 7 More than 1500 Euro 6 6 28% 11% 11% 1001-1500 Euro 501-1000 Euro 101-500 Euro 22% 18% 0-100 Euro I don't know 2 18% 21% 18-24 25-34 35-44 45-54 55+ 2 32% 8% 1 1 22% 18% 1 1 Male Female Total Differences by age Differences by gender *For countries not using the Euro, equivalent local currency amounts were used. Overview of results concerning savings attitude > Accessible money 9
Economic effects on personal finance Overview of results concerning savings attitude
Consumers in Germany and the Netherlands are least affected by the current economic situation Inflation seems to be the main reason for the declining finances in all European countries. Consumers in Spain and Italy have the highest percentages of respondents who have been affected by the current economic situation. The relatively large share of respondents of Spain who experience a weaker financial position due to losing their jobs is disturbing. 10 9 8 7 6 Thinking about the current economic situation - has this affected your finances? (select all that apply) 8% 8% 8% 1% 8% 8% 8% 11% 11% 1 1 1 1 32% 32% 2 2 38% 38% 4 48% 5 51% 4 5 4 41% 48% 52% 3 4 4 2 2 22% 2 2 21% 2 11% Turkey Luxembourg Poland Romania Germany Czech Republic United Kingdom Slovakia Italy Spain France Austria Netherlands Overview of results concerning savings attitude > Economic effects on personal finance My financial position has improved My financial position has weakened as I am supporting children or relatives who are facing difficulties My financial position has weakened because my partner has lost a job or has had their pay reduced My financial position has weakened because I have lost a job or my pay has been reduced My financial position has been weakened because prices are rising more quickly than my income It has not affected me greatly None of the above 11
For the majority of consumers, their financial position has weakened The financial position of almost three quarters of the population has weakened. Consumer aged 45-54 have been affected the most due to rising prices. Male consumers have been affected less by the current economic situation than female consumers. Thinking about the current economic situation - has this affected your finances? (select all that apply) 10 9 8 7 6 11% 8% 1 1 1 31% 4 51% My financial position has improved My financial position has weakened as I am supporting children or relatives who are facing difficulties My financial position has weakened because my partner has lost a job or has had their pay reduced My financial position has weakened because I have lost a job or my pay has been reduced My financial position has been weakened because prices are rising more quickly than my income 10 9 8 7 6 1 4 4 4 It has not affected me greatly 32% 2 2 32% None of the above 3 28% 31% 8% 18-24 25-34 35-44 45-54 55+ Male Female Total Differences by age Differences by gender Overview of results concerning savings attitude > Economic effects on personal finance 12
Economic effects on savings behaviour Overview of results concerning savings attitude
Saving behaviour has changed, lowering saving in all countries All countries have a higher proportion of consumers indicating they are saving less instead of more, and this strongly correlates with the way the current economic situation has affected financial positions. 10 9 2 Thinking about the current economic situation - how has this affected your savings behaviour? 18% 18% 1 1 1 11% 8 7 6 2 18% 32% 38% 42% 48% 51% 3 2 3 1 52% 38% 42% 6 51% 3 3 4 6 58% 5 7 41% I am saving more than previously It has had no effect on how much I save I am saving less than previously Turkey Luxembourg Slovakia Italy France Austria Germany Poland Spain Czech Republic United Kingdom Romania Netherlands Overview of results concerning savings attitude > Economic effects on savings behaviour 14
Changes in saving behaviour are similar for men and women Younger people (aged 18-24) are affected the least by the current economic situation. More than a quarter saves even more than before. Men and women are almost equally affected by the current economic situation, the majority is saving less than before. Thinking about the current economic situation - how has this affected your savings behaviour? 10 9 2 21% 1 11% 8% 10 9 1 1 1 8 7 6 3 31% 3 31% 3 I am saving more than previously It has had no effect on how much I save I am saving less than previously 8 7 6 3 32% 3 3 48% 52% 58% 5 5 51% 18-24 25-34 35-44 45-5454 55+ Male Female Total Differences by age Differences by gender Overview of results concerning savings attitude > Economic effects on savings behaviour 15
Spending behaviours Overview of results concerning savings attitude
Large differences between countries concerning attitude towards spending Besides feeling the least comfortable with regard to their savings behaviour, Italian consumers also feel least comfortable with their spending behaviour. 10 9 8 7 6 Netherlands Thinking at the moment about your personal spending only, which one of the following best describes your level of comfort with the amount of money you spend on a regular basis? 3 3 2 2 22% 1 2 8% 2% 2% Luxembourg Germany 3 3 2 1 1 8% 32% 18% 3 2 3 1 8% Austria United Kingdom France Spain 8% 28% 28% 3 22% 2 2 2 3 11% 11% 11% Poland Turkey Slovakia Romania 2 2 3 28% 1 Overview of results concerning savings attitude > Savings attitude 2 11% Czech Republic 3 2 8% Italy I am very comfortable with it. I can easily pay my bills and still have money left over to save and have some fun with I am comfortable with my spending. I can pay my bills and still have some left for saving but have to budget to buy special items Neither comfortable nor uncomfortable. I manage to pay my bills each month but don't have much left over for fun I am uncomfortable. I manage to pay my bills each month but I have to budget very carefully to avoid running up debts I am very uncomfortable with my spending. I often run out of money by the end of the month and am running up debts 17
Consumers aged 45-54 feel less comfortable with their spending than average The only group standing out is the group aged 45-54 who show higher feelings of discomfort with regard to their spending. Women accross Europe tend to feel less comfortable with their spending than men. Thinking at the moment about your personal spending only, which h one of the following best describes your level l of comfort with the amount of money you spend on a regular basis? 10 10 9 1 11% 11% 1 9 1 8 7 6 2 32% 2 2 32% 2 I am very comfortable with it. I can easily pay my bills and still have money left over to save and have some fun with I am comfortable with my spending. I can pay my bills and still have some left for saving but have to budget to buy special items Neither comfortable nor uncomfortable. I manage to pay my bills each month but don't have much left over for fun I am uncomfortable. I manage to pay my bills each month but I have to budget very carefully to avoid running up debts 8 7 6 31% 2 28% 31% 2 I am very uncomfortable with my spending. I often run out of money by the end of the month and am running up debts 18% 1 22% 22% 1 8% 18-24 25-34 35-44 45-54 55+ 1 22% 8% Male Female Total Differences by age Differences by gender Overview of results concerning savings attitude > Savings attitude 18
Monthly spendings Overview of results concerning savings attitude
Housing & food are the largest regular montlhy spending items Three quarters of all Europeans consider that housing and food are their largest regular monthly spending items. There are some striking differences regarding the distribution of these costs between countries. In the Netherlands, people spend by far the most on housing, while Italians spend more on food. Also the Eastern European countries are spending relatively more on education. 10 9 8 7 6 What are your biggest personal regular monthly spending items? 1% 2% 8% 1 8% 1 1 18% 1 28% 3 4 3 3 51% 5 4 51% 6 5 51% 48% 4 3 3 3 2 2 21% 1 Education Medical bills\health insurance Leisure & entertainment (such as cinema, dinning out, gym fees.) Telecommunications (including mobile phones) & Internet Petrol and transport fares Utility bills (e.g. gas, electricity, water) Food Rent, mortgage and other housing costs Netherlands Germany Austria Luxembourg France United Kingdom Czech Republic Spain Slovakia Turkey Italy Overview of results concerning savings attitude > Biggest monthly spendings Poland Romania 20
Across Europe, people tend to spend as much on housing as on food Monthly spending varies with age. Housings costs are percieved to decline from age 35 onwards. Men are more likely to consider food to be their largest regular item of spending than women. Women are more likely to consider rent and accommodation as their largest regular spending item. What are your biggest personal regular monthly spending items? 10 9 8 1% 8% 1 10 9 8 8% 7 6 3 41% 4 Education Medical bills\health insurance Leisure & entertainment (such as cinema, dinning out, gym fees.) Telecommunications (including mobile phones) & Internet Petrol and transport fares Utility bills (e.g. gas, electricity, water) 7 6 41% 3 3 Food 32% 4 4 2 Rent, mortgage and other housing costs 3 42% 38% 18-24 25-34 35-44 45-54 55+ Male Female Total Differences by age Differences by gender Overview of results concerning savings attitude > Biggest monthly spendings 21
Financial decision making Overview of results concerning savings attitude
Family most trusted for financial decision making Across Europe, family is most trusted t for financial i decision i making. Trust in financial i investment t advisors and banks varies greatly between countries. Only a small number of Europeans have confidence in government information sites and the media. 2 Who do you trust to help you make a major financial decision? 20 1 10 2% 2% 1 2 1 1 2 1 4 2 8% 2 28% 82% 81% 8% 28% 2 41% 1% 11% 21% 18% 18% 2% 11% 8% 1 1% 31% 2 41% 1 32% 8% 1 11% 2 22% 1 2 18% 22% 3 6 68% 6 6 62% 62% 61% 6 5 2 18% 1 3 1 Government and public information advice services such as charities Specially qualified financial advisors Online sources such as money advice websites and social media sites such as Facebook Media (TV, radio, print) Banks and other financial institutions Work colleagues Friends Family 4 41% Turkey Romania Slovakia Luxembourg Poland United Kingdom France Netherlands Italy Spain Czech Republic Germany Austria Overview of results concerning savings attitude > Financial desicion making 23
Younger people mostly rely on family for financial decisions The proportion of European consumers relying on family gradually decreases with age. Women across Europe tend to rely on family more than men. Who do you trust to help you make a major financial decision? 20 20 18 Government and public information advice services such as charities 18 16 1 1 10 8 6 8% 11% 18% 22% 8 7 1 1 2 61% 1 11% 28% 52% 1 11% 31% 2% 4 Specially qualified financial advisors Online sources such as money advice websites and social media sites such as Facebook Media (TV, radio, print) Banks and other financial institutions Work colleagues Family 16 1 1 10 8 6 1 1 1 2 52% 2 2 6 5 32% 2 21% 1 18-24 25-34 35-44 45-54 55+ Friends 1 Male Female Total Differences by age Differences by gender Overview of results concerning savings attitude > Financial desicion making 24