Almost 65% of Spaniards admit to keeping less than 16% of their savings for retirement.
This means that the economic cushion of Spaniards is below the 20% recommended by experts.
This is one of the findings of the latest Financial Wellness Index (FWI) conducted by the Advantere School of Management for the online bank N26.
However, the report indicates that there is a generational progression in the amount allocated to this purpose, with people born between 1957 and 1977 saving the most for retirement.
On the other hand, the report also reveals the profile of those who allocate less money for this purpose, namely men, aged between 27 and 42 years, full-time employees, and residents in towns with over 20,000 inhabitants.
Saving for retirement is not as popular
The report suggests that there is a positive correlation between age and the amount allocated to retirement, with older people saving more. This trend is also shared by women.
Saving for retirement has become less popular among Spaniards in recent years, with people prioritizing ‘Carpe Diem over saving for the future.
The report shows that almost 90% of those surveyed have difficulty paying bills and credit commitments, largely due to the instability of their income source, which is regarded by almost two-thirds as “unreliable”.
Furthermore, 62% say they run out of money at the end of the month, up to three times a year, for basic needs such as electricity and water.
In the case of having an unexpected expense, 85% of those surveyed confessed that they would need to borrow money since their savings would be insufficient.
Almost 40% have an amount equal to or less than two monthly salaries saved and available at this time.
This suggests that many Spaniards have poor financial planning skills, although half of the participants say they regularly check their monthly expenses.
This Financial Wellness Index (FWI) suggests that there is a lot of work to be done to improve the financial well-being of Spanish society.
The N26 report highlights the importance of financial literacy and planning to achieve financial stability and avoid unwanted surprises in personal finances.