10/21/2022 – Four out of ten people in Austria have dealt more with the topic of financial provision in the last two years than before, according to the results of a survey by Uniqa and Mindtake. At the same time, only a minority consider each of the three pillars of the old-age provision to be “very” or “fairly” secure sources of future pension benefits.
According to their own statements, 29 percent of the Austrian population between the ages of 16 and 60 have already taken care “quite or very intensively” of their own financial provisions for the time after their professional life.
This is the result of a survey conducted by Mindtake Research for Uniqa Österreich Versicherungen AG from July 7 to August 5 among 3,137 people. Unless otherwise stated, data refer to this total number of respondents.
Financial provision is an important issue for seven out of ten
Significantly more, namely 70 percent, state that the issue of financial provision “for the future and after work (i.e., for example, through savings, additional pension insurance, life insurance, investments, etc.)” is very important to them.
For another 22 percent, this issue is “partly, partly” important, eight percent rather or not at all.
The importance of financial provision has increased recently for many
According to the survey, many people’s attitudes towards financial provision have changed in the last 24 months: 41 percent say, “I’m more worried about it,” 49 percent saw no change, and 10 percent were still less worried about it.
Among those aged 16 to 29, a higher proportion (50 percent) stated that they were more concerned about the issue of financial provision, while 14 percent in this age group were less concerned.
What made the 1,585 people who changed their minds change their minds? For 86 percent it was inflation, for 61 percent the pandemic, for 59 percent the war in Ukraine. Occupational changes (job change, job loss, etc.) were a factor for 41 percent and climate change for 40 percent.
The minority provides financially
According to their own statements, 41 percent (2021: 44 percent) have already taken specific steps “to have financial security later (if I need it) or in old age.” Among young people aged 16 to 29, ie 811 respondents, the proportion of “pensioners” is currently 29 percent.
On the other hand, 31 percent of all respondents say that they cannot afford to make financial provisions.
Forms of saving and investment used and imaginable
What (selected) forms of investment are currently used personally? Which ones would you generally consider when looking for new investment opportunities? For each investment type, only those people who were familiar with the respective investment type were asked.
Pension and life insurance are each used by 46 percent. 32 and 27 percent don’t have one, but are basically open to it. 21 and 28 percent do not have or want any pension or life insurance.
According to the survey, 26 percent are shareholders. 17 percent is invested in so-called cryptocurrencies, more than in bonds (15 percent). However, the potential of bonds is greater: 37 percent can imagine investing in bonds and 21 percent in cryptocurrencies.
Confidence in supply offers can be extended
61 percent of all respondents assume they will have less money available when they retire than during their active working life. There is more optimism among young people aged 16 to 29: “only” 47 percent expect to have less money at their disposal.
However, there is also “room for improvement” when it comes to confidence in the various forms of pension provision. Only 32 percent consider the statutory pension to be “very” or “quite” secure. That’s a “significant decrease” compared to 2021, when 35 percent expressed confidence.
Only four percent – two percent among those aged 16 to 29 – agree with the statement: “I trust the state pension system and will not take any measures of my own for financial provision.”
However, the second and third pillars also have the confidence of a minority: 37 percent consider that the new pension funds and severance pay are “very” or “fairly” safe; year over year, this is also a “significant decline” of three percentage points.
In this survey, private provision has a confidence value of 45 percent, and that’s also a significant decline compared to 48 percent in 2021.
30 percent would reduce returns in favor of ESG
Since ESG criteria and sustainability criteria are on everyone’s lips when it comes to investing, this aspect was also asked.
According to the results, if they were given a choice between sustainable and “traditional” investments, four out of ten would opt for the sustainable product.
Are you also willing to accept performance or safety losses in favor of sustainability? 30 percent say yes. For people aged 16 to 29, this proportion is slightly higher than 42 percent.
What should sustainable investments be able to do?
However, when it comes to sustainable investing, a “good return” is also the top priority for almost a third (men: 35 per cent, women: 26 per cent).
17 percent (men: 15 percent; women: 20 percent) say that social justice (working conditions, safety and health), aka the “S” in ESG, is most important to them.
Another 17 percent put the environment (climate, resources, biodiversity) first. The fact that there are no weapons in the portfolio is the most important aspect of sustainable investment for 14 percent.
An overview of the survey results can be downloaded as a PDF document from the Uniqa Group website.