Representative IMAS study on awareness and behaviour in respect to provisions
  • Fears of the future increase the need for care
  • Financial provision for 84% of the Austrians of great importance
  • Safety more important than return
Social change and fears of the future

Austrians who generally think about the long-term future give a mostly pessimistic assessment: 29% are sceptical, 31% even concerned about the period over the next 10 years.The reason for this is, among other things, that people feel that they no longer can keep pace with the perceived too rapid change in society:Advances in technology and science, the use of smartphones, tablets and similar devices as well as communication via WhatsApp, Facebook, etc., act as a "particle accelerator" of everyday life. In addition, there is a lack of confidence in the future statutory pension: Three quarters of those questioned (73%) do not believe that they will be able to maintain their standard of living with the state pension alone at the time of retirement. The combination of rapid social change and the growing fears of the future have a strong impact on the need of the Austrians.

Health, pensions and family are the key topics with reference to provisions

For more than four fifths of those questioned, financial provision is rather important (84%), and for two fifths it is even very important (43%). For the younger generation, that is among the 16- to 29-year-olds, the importance of provision is remarkably high by comparison (to 91% it is at least rather important). Accordingly, more than half of respondents (52%) strongly agree that private provision is becoming increasingly important, as they believe the state will further reduce pension benefits in the future. Hardly anyone is convinced of the opposite. The study also clarifies what matters to Austrians in respect of provision: health and old-age provision and providing for the family. The highest priority is given to the topics of health and pension (about 70% each). For six out of ten respondents (59%), the family also plays a particularly important role. "The study confirms that there is an increased need for hedging in society and that private provision is becoming increasingly important. For us, as a successful life and banking insurer, a clear signal to adapt our products and services to current living conditions and to focus even more on customer proximity. Because every insurance that is taken out is an individual promise of security - often over many decades," says Manfred Rapf, Director General of s Versicherung.


Nine out of ten Austrians already provide for the future

91% of the surveyed Austrians say that they own at least one provision product for which they spend an average of 145 Euros per month. Men spend 183 Euros per month on invested retirement capital, well ahead of women, who pay an average of 100 Euros for old age. Corresponding to the strong needs for security of the society, the classic contents/ home insurance with 60% and the savings bank book with 58%, followed by the building loan contract and the private accident insurance with 44%, are still the most popular provision products. One third of Austrians have a classic life insurance policy, 29% made provisions for their future by buying real estate and 23% rely on private health insurance. A company pension, state pension plans and securities are in the portfolio of one fifth of those questioned. In comparison, only 3% have taken out a private long-term care insurance, which reveals clearly underdeveloped provision awareness in this area.


Bank is the first point of contact for financial security
Thomas Schaufler, Privatkundenvorstand der Erste Bank Oesterreich ©Erste Bank, Hinterramskogler

Especially against the background of a constantly accelerating everyday life, personal contact gains even greater importance in obtaining information on provision products. When Austrians are thinking of how their bank or insurance company can support them in the context of societal change, for 57% the bank is very important as a reliable point of contact for financial matters. "Especially the financial pension is so individual and versatile that you should plan it together with a professional," says Thomas Schaufler, Head of Private Customer Business at Erste Bank Oesterreich. As many as 31% of the respondents do see the bank or the insurance company as a provider of concrete assistance and services, and 27% value the easy accessibility of their financial partners via various channels.


Security more important than yields

If one looks more closely at the actual investment behaviour, it becomes clear that to Austrians security is way more important than yields when it comes to investing money. When choosing between these two factors, 60% are in favour of security. 29% prefer a balanced investment and only a minority of five percent prefer a high or the highest possible return. Even when considering several factors related to investing for provision purposes, high returns are in last place at 27%. More important to Austrians are product flexibility (41%), capital guarantee (42%), transparency/comprehensibility of the product (43%), high-quality consultancy services (43%) and a low investment risk (50%). "Diversification is the most important thing when it comes to provision - never stake everything on one card," says Schaufler. With an ECB key rate at 0%, the loss of purchasing power (2.6% inflation) is ubiquitous in traditional saving. "In addition to the cash that you need for everyday emergencies, you should consider a long-term strategy with your consultant to at least offset inflation."

About the study: s Versicherung, Erste Bank und Sparkassen commissioned the IMAS market research institute with an online survey on "Awareness & Behaviour in Respect to Provisions". In 2017, 1,000 people between the ages of 16 and 65 answered questions on the topics of financial provision, making provisions in general, provision products, and social change and its impact on provisioning. The results are representative of the Austrian population over 16.

Erste Group Bank AG published this content on 15 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 November 2017 14:09:04 UTC.

Original documenthttps://www.erstegroup.com/en/news-media/press-releases/2017/11/15/austrians-spend-145-euro-per-month-on-provision-products-alias

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