This trend is getting worse year by year, and is not good in international comparison among the 9 countries participating in the research, according to an international study conducted by Provident Financial Zrt on behalf of its parent company, covering 9 countries.

They highlighted that the data draw attention to the worrying extent of financial vulnerability, which has not only economic but also social consequences: an unexpected expense or loss of income would already mean a serious crisis for many.

According to a representative research conducted in 9 countries on behalf of International Personal Finance - IPF, the parent company of Provident Financial Zrt., almost half, 47.7 percent, of the Hungarian population can only save a maximum of 20 percent of their income at the end of the month.

The situation is particularly worrying for those who are completely unable to save, with 27.1 percent of respondents currently living paycheck to paycheck. This rate is steadily rising, from 21.1 percent in 2022, to over 25 percent in 2023 and 2024, and reaching 27.1 percent this year, they said.

They added that in Provident's other European markets - Poland, the Czech Republic and Romania - an average of 18.6 percent of the population is unable to save money.

They pointed out that gender differences are also reflected in the data, with 32 percent of women saying they were unable to save at all, while the figure among men was 20 percent.

Men are better at saving in all categories examined, which is probably due to persistent labor market inequalities.

Thirty-six percent of 18- to 34-year-olds are able to save more than 20 percent of their income, while 15 percent are unable to do so at all. In contrast, half of middle-aged adults (35-54 years old) are able to save less than 20 percent, and a quarter have no money left at the end of the month. Nearly 40 percent of those over 55 are unable to save anything, they added.

They pointed out that the data clearly shows social differences: women, those with lower education, those living in villages, and members of the older generation are much more likely to be classified as non-savers.

Although it is worth adding to the villages that while 34.3 percent of residents there are unable to save at all, 22 percent of residents of the capital are also unable to do so.

The survey also showed that there are large differences in the frequency of savings among the population.

The largest proportion, 32.4 percent, is represented by those who, although they were not able to save money every month or most months, managed to save occasionally when they had the opportunity.

This suggests that although their financial situation did not always allow for regular savings, they tried to improve their financial situation from time to time.

29.2 percent of the Hungarian population did not save any money at all in the past year. Their situation highlights the challenges of the changing economic environment and the inability to save due to constantly rising expenses. This group is particularly vulnerable, as they become completely helpless in the event of an unexpected expense, the statement said.
 

20.8 percent of respondents tried to save every month or most months, but the amount was not fixed - so their savings were not conscious, but rather occasional.

The smallest group, 12.6 percent, is made up of those who set aside a predetermined amount every month or most months, which would be optimal for achieving financial stability, they reported.

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