Study: Most of the income gain from the tax reform is spent on consumption

• Tax reform: 39% are spending their additional income immediately
• Amount intended to be saved over the coming 12 months stands at EUR 5,700
• 22% are investing in securities

Austrians continue to be determined savers: According to a study conducted by Integral on behalf of Erste Bank, 82% (-2) plan to invest money in the coming 12 months. While traditional forms of saving continue to be preferred, their attractiveness is waning. 58% are putting money into their savings account (-5) and 50% save in the form of building savings contracts (-6). Nearly a quarter of Austrians (22%) are putting money into securities, and with 12% (+4), equities are increasingly gaining in popularity. Real estate investment is growing as well: Every fifth respondent invests funds into his or her own house or apartment (20%), this is an increase by 4% compared to the previous year. By contrast, investment in life insurance policies (36%) and pension plans (33%) is declining, with a loss of 5 percentage points each.

The upward trend in saving is also evident in the average amount intended to be allocated to savings. The average savings amount was boosted by EUR 900 compared to the 2ndquarter of 2015, and currently stands at EUR 5,700 (+19%). 37% of Austrians are still planning to make a major purchase in the course of the current year. Especially people in the 30 to 49 years age group are considering a major investment, which is an increase of 9% compared to the previous year. In the majority of cases, people want to finance the purchase with their own savings (84%). Financing the purchase with a bank loan is conceivable for 14%. With respect to loan financing, a significant increase in the average amount intended to be borrowed is detectable. On average, Austrians plan to take up a loan over EUR 70,300, which represents an increase of 10% over the 2ndquarter of 2015.

The tax reform, which is in force since the beginning of 2016, has a positive effect on Austrians' net income. 21% of Austrians say they don't really notice the additional money in their wallets, 27% say that they want to save it, and a lion's share of 39% are spending their additional income."Consumer spending is giving a boost to the economy, and that is a good thing. However, those who are able to do so, continue to set more money aside", notes Thomas Schaufler, chief retail officer of Erste Bank. Particularly young adults in the 14 to 29 years age group want to invest their additional income with a view toward the future (49%)."This is a positive development, as the topic of provision for the future is often given a low priority by young people",Schaufler adds.

About the study: Integral has interviewed 1,000 Austrians (representative for the Austrian population from the age of 14) via telephone about their saving and investment plans, as well as their financing requirements. The survey was conducted in the time period from 24. May to 27. June 2016. Unless indicated otherwise, comparative figures refer to the figures of the same quarter of the previous year.