The young people in the Z generation are the most optimistic about their financial future, although over 63% say they fail to put any money aside and only 16% think they would do in the situation of unforeseen expenses.
Young people in generation Z are the most optimistic about their financial future. Freepik photo
Romanians are reserved about their financial future in the context of lack of stability and a solid financial situation that protect them from uncertainties. Only 30% are optimistic when it comes to their financial prospects, especially since they fail to put money aside and very few think they would do in the situation of unforeseen expenses, an online poll initiated by Allianz-Tiriac shows at national level. The most optimistic are the young people in the Z generation (47%), although they also have the biggest financial challenges, confirming the high need for protection.
One in two respondents says that he fails to put any money aside, having revenues with which he only covers the daily expenses or which only reach the strictly necessary. The level is higher among the Z generation (63.6%), but slightly lower among Millennials (45.5%), in line with the tendency to increase personal income with career evolution, the Allianz-Tiriac survey shows.
Little below 30% of young people in generation say they have a financial situation that allows them and put something aside and only 7.2% feel they have a good situation and sufficient savings. In this context, only 16.3% I think can cope with expenses in an unexpected situation, such as an accident, a health problem or even a family death. In addition, if they were losing their income, 6 out of 10 do not think they will be able to handle more than three months with the reserves they have.
In order to have financial comfort, almost 62% of the Z respondents believe that it would need to have aside the equivalent of up to 6 salaries, above 45.5% among all generations, according to the Allianz-Tiriac survey. And for another 23% the level of comfort is between 12 and 24 salaries, below the average of 33.5%, reflecting the shorter thinking of young people compared to Millennials and Gen X.
“The level of protection in Romania is under the real needs of people, especially when we talk about young people, who often do not have sufficient savings. Romanians want financial safety, but only 11% are based on insurance, although they recognize their importance for personal and loved one. Instead, almost 48% think that they will borrow from family, friends or even from the bank, and almost 41% do not have a plan, but they are based on finding solutions at the moment. Reality, however, shows that a problem that comes with unplanned expenses does not wait for savings or damage solutions, and the financial situation of the family thus becomes under pressure. It is precisely here the role of insurance, providing protection against the unforeseen at a low cost and financial support immediately when it is the most necessary”Says Adriana Matache, CEO & CFO deputy at Allianz Țiriac Asigurări.
Over 61% of the respondents in the Z generation are aware that insurances are a real protection, but also financial safety. Moreover, for 3 out of 10 it is a way to reduce pressures on personal budget in situations such as an accident, a surgery, a serious illness, a family death or different risks when it comes to their car or their home.
