Survey: Hungarians know little about finance

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Hungarians still know very little about finance, in fact their level of knowledge is “extremely low” as per a representative survey by OTP Bank, deputy-CEO Antal Kovács said today, according to a report by Hungarian news agency MTI. OTP carried out its survey this fall and involved 1,500 bank account holders between the ages of 18-70.

The findings of the survey reveal that respondents on average put the inflation rate and bank deposits at approximately 6%, while the inflation rate has been around 0% for the past two years, MTI reported.

According to the deputy-CEO, it is troubling that approximately 75% of respondents would be happy to give their money to someone offering 9% interest on their investment, and 40% would give it to someone offering a 40% interest rate even though actual yields are currently around 1-2%, MTI said.

However, Kovács said it is encouraging that 22% of respondents said they were saving money for their retirement, although it “was astonishing” that almost half of the respondents are not thinking about how they will make a living once they end their working careers, MTI said.

Respondents on average only expect a pension amounting to 64% of the income they received during their last year of work. But they said they would be satisfied with 75% and would feel it right if they received 83%, however, according to analysts predictions, the ratio will only be around 30-40%, MTI said.

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