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Hungarians save more for holidays, less for self-support

According to research by OTP, almost twice as many Hungarians plan on saving for holidays, while very few think about saving for their retirement.

OTP Bank’s 2017 Self-support Index, which has just been published, found that about a quarter of all Hungarians planned to save money for domestic and international travel. During the summer of 2017, Hungarians spent more than HUF 129 billion on inland travel alone, up 25% from 2013, according to the Central Statistical Office (KSH). 

The number of those who say they plan to save money for travel has doubled since 2012, yet only one-in-five people was able to carry out planned trips in 2017. Contrastingly, interest in so-called self-support savings are lagging behind, with only 10% planning to save for retirement. Furthermore, a mere 6% said they were able to actually save for self-support, signaling a drop compared to previous years. 

“We are experiencing that short-term, tangible saving goals, such as holidays, electronics, and the expansion of one’s wardrobe are getting more popular,” says Győző Nyitrai, head of Savings and Securities Services and Financial Planning at OTP Bank.

“Meanwhile, every year we pay less attention to self-support, which might be able to ensure a happy retirement. In addition, our surveys show that many saving plans get stuck at the level of thoughts, worsening the situation further,” Nyitrai adds. 

OTP’s research matches with the results of a study by Intrum, also just published, which listed travel expenses as the third most popular reason for saving money among Hungarian young adults.

Interestingly, the top two reasons given for saving by the youth in that study were to cover for unexpected expenses and to put towards buying a home.