Half of Finns save on a regular basis but without a plan. Married couples and those in common-law relationships are more inclined to save regularly. All in all, the median of monthly savings is EUR 170.
Half of Finns save monthly while one in ten saves occasionally. Married couples and people in common-law relationships are more inclined to save regularly. The survey also showed that men save more than women. Overall, half of Finns save less than EUR 170 a month and half more than that, despite huge differences in the amounts saved.
- The age group from 26 to 39 has the largest proportion of regular savers, whereas the age group from 40 to 53 contains more non-savers. The sum saved monthly tends to increase with age and income, says Anu Numminen, Nordea’s Private Economist in Finland.
The survey showed the main reason for not saving to be lack of surplus funds. Non-savers with middle income or between 26 and 39 frequently claimed lack of funds due to repaying a mortgage.
- Regular savings benefit almost all customers. Of key importance is finding the right target and deciding on a monthly sum. If, for example, one is repaying a mortgage, it is a good idea to put money monthly in a well-diversified equity fund. Especially now that the interest rates are low, it is a good time to save money and to be prepared for future changes in the interest rates, says Jari Ohrankämmen, Nordea’s Finnish Head of Sales in Savings.
Finns save without a plan
Finns continue to save mainly in bank accounts; more than half of the respondents save this way. 25% save in funds and 14% make direct equity investments.
Finns typically save without a definite plan (57%). Being quite self-confident savers, more than one in three says that they can save or invest without a plan. But, when asked about making investment decisions, four out of ten claim they do not give this much consideration; they simply put the money aside.
- Having a personal investment plan is very wise because without one it is easy to act emotionally. In the world of investments, this rarely produces good results, says Jari Ohrankämmen.
- The key factor in an investment plan is determining the distribution between equity and fixed income investments. A well-drafted investment plan encourages people to buy cheap and sell dear, thus facilitating good investment decisions even in challenging times, says Jari Ohrankämmen.
Financial independence as a goal
For some 40% of respondents the main reason for saving is to achieve financial independence. Every fourth respondent claims other intentions or mentions having learned the importance of saving from their parents. One in six claims to have started saving because of concern about the size of their pension.
- To accumulate savings the key factor is to start doing it in time. Even a very small sum is a good start and when you transfer the money from your current account immediately on the pay day, you cannot spend it on something else and you accrue savings effortlessly. Remember that you can get a personal investment plan from your bank, and this will also help you select the savings instruments suited to your situation, says Anu Numminen.
In May Nordea commissioned a survey of the attitudes of 18-65-year-olds in the Nordic countries towards different forms of savings and investments. In Finland the number of respondents was 1,041. The survey was carried out by Synovate.
For further information:
Anu Numminen, Private Economist, tel +358 9 165 88218
Jari Ohrankämmen, Manager, tel +358 9 165 48101
Anni Kuusisto, Press Officer, tel +358 9 165 42653