Survey: more than half of Latvian residents form savings for family’s financial security

55% of Latvian residents form savings in a bank. This is 20 percentage points more when compared to 2016. Residents primarily form savings to ensure their own and their family’s financial security (52%), followed by retirement plans (37%), travel (23%) and major purchases (22%), according to results of a survey by Norvik Bank.

It is worth mentioning that in families with children under the age of 18, one-third of parents also make savings for their education, the bank notes.

Survey results show that currently savings are created the most actively by residents aged 30 to 39 (65%), whereas more rarely savings are created more rarely by residents of pre-pension or of pension age (44%).

«As the economic situation improves and residents have more and more free finances, this money is more often put on a bank account or deposit account. This is shown by results of our survey and data compiled by Finance and Capital Market Commission. The main motivation for making savings is ensuring financial security in emergencies. We see as much in the behaviour of our clients. For example, senior residents make savings on a savings account, which they then use to pay real estate tax or cover bills for utilities during winter. By regularly diverting a small amount from monthly income, it becomes easier to compensate larger expenses when necessary. For youngsters major expenses include travel, whereas families focus on children’s education and seniors – on household expenses and medicines,» notes Norvik Bank’s individual service office manager Anna Vjaksa.

Respondents primarily pick savings accounts (44%) for deposits, followed by 3rd level pension programmes (41%) and money deposits on their wage accounts (37%). 3rd level pension accounts are used the most often by respondents aged 50-65 (52%) and the least often by youngsters (29%). It is worth mentioning that housewives and young mothers deposit money on savings accounts the most actively (64%).

When picking who to entrust their finances, residents mention being able to access their money at any time as the most important factor (64%). Two years ago, this factor was not as important for residents. Other important factors include profitability indexes (63%) and recognition of the chosen bank (59%), notes Norvik Bank.

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