Planning for the future is not one of our strong points, according to the 6th annual survey on "Poles' attitudes towards saving" conducted by The Citi Handlowy Leopold Kronenberg Foundation. We still don't think long-term; the question of retirement is still an abstraction for us. Not many people put aside money to secure their financial future; less than half of us save. Putting aside money regularly is a particular problem for us - only 10% of Poles do this. We are afraid to invest, and we identify concern about finances with detailed control of expenditures.
The survey results leave no room for illusions: the negative trend regarding saving, visible already for several years, has not changed. Only 10% of Poles put aside money on a regular basis, and even fewer of us think about retirement (9%). The percentage of people investing has dropped significantly (12% in 2012 vs. 6% in 2013), and keeping cash at home is, according to us, one of the safest ways of "investing" our savings (15%).
We prefer to spend than save
The crisis, low minimum pay, and growth in unemployment have meant that saving is not high on the list of priorities of the average Pole. Although the percentage of people putting aside money in comparison to last year has grown somewhat, it is not enough to speak of a reversal of the negative trend in saving that has prevailed for the past few years. While we say that one should save for the future, over half of us (55%) earmark everything for present needs, living "from the first to the first", and only 10% of us put aside money regularly.
Retirement - what will be will be
Our thinking about saving for the future, unfortunately, does not include retirement. Despite media coverage of the subject, not many of us want or know how to take care of our finances taking a long-term view of several decades. We focus mainly on the present and don't think about what will be. The percentage of people setting aside money in order to secure their financial future has fallen from 13% to 9% compared to last year. This statistic is disturbing considering that a large proportion of Poles believe that their future pensions will be lower than the salaries they receive now, and that nearly one in ten say that the state will not be able to pay them benefits. So, if we are aware of certain risks that may arise in the future, why are we not taking steps to prevent them?
This situation can have many causes: retirement is still quite far off, and for us the most important thing is to take care of our current obligations and needs. Moreover, not many Poles know how to manage their own finances or have a habit of saving, says Krzysztof Kaczmar, President of The Citi Handlowy Leopold Kronenberg Foundation.
Being at odds with investment
Poles not only don't have financial surpluses, but also they are increasingly reluctant to invest their money. The percentage of people investing decreased significantly compared to 2012, falling by half (from 12% to 6% in 2013). It could be a result of last year's Amber Gold scandal, which caused a loss of confidence in the entire financial sector. Moreover, media reports about the collapse of shadow banks contribute to this trend. The deepening of the crisis of confidence in financial institutions has led to us trusting only ourselves when it comes to investment and savings (34%), and to considering keeping cash at home (15%) and purchasing real estate or land (15%) the safest ways to invest money.
The magic of cash
Poles have an unusually strong attachment to paper money, with over half of us using it every day. Is there, however, any special reason why we prefer cash to payment cards? Not really. What is at work here is good old force of habit. As many as 41% of those surveyed cannot say why they use cash, while others mention convenience and the feeling of security provided by paper money. It is symptomatic that 17% of respondents report that cash gives them a feeling of greater control over expenditures. Usually, however, these are older, less educated individuals with lower incomes.
* "Poles' attitudes towards saving" is a regular survey conducted by The Citi Handlowy Leopold Kronenberg Foundation and TNS Polska. The survey analyzes Poles' approach to questions related to saving, retirement, and investment. It is published as part of "Savings Week", a nationwide educational campaign connected with World Savings Day celebrated around the world on October 31.
