Income tax exemption for mothers: women affected would set aside 38 out of every 100 forints
A recent survey of 1,000 Hungarians revealed that, when choosing savings products, security and predictability are currently the primary considerations for adults, even more important than the rate of return.
The increase in financial awareness suggests that more and more people are taking a closer look at the costs associated with choosing a particular form of investment, compared to previous surveys. However, it is surprising that only 17% of respondents listed government support, such as tax credits, as one of the five most important factors when choosing an investment.
Despite the digital revolution of recent years, the majority still prefer personal advice (56%) to independent online transactions (44%) when making investment decisions. However, online transactions are a more important option for those with children.
When choosing a savings plan, the most important factor is having flexible access.
This was the primary consideration for one in five respondents. While high returns are also a significant advantage, few are willing to take risks in exchange for them. A closer look at the figures shows that higher-income earners are more willing to take risks to achieve better returns. The majority are either unable or unwilling to commit to the long term, preferring short-term savings options. Investments in forints remain more popular than those in foreign currencies. The former are favoured by 74% of respondents, while the latter are favoured by 26%.
Based on the responses, one-fifth of women said that they are, or will soon be, entitled to the personal income tax exemption for mothers with multiple children. Interestingly, those affected by the change in eligibility
plan to save an average of 38 per cent of their additional income.
The picture is more mixed when it comes to how this extended eligibility will affect the popularity of pension savings plans that offer tax refunds. More than one-third of respondents do not find traditional pension savings attractive without the tax credit, for which they will no longer be eligible, of course. However, a quarter of respondents expect to be able to save more for retirement thanks to the tax exemption.
"The research also revealed that people are starting to opt for more flexible savings options. This means that
many people do not want to commit to a long-term investment that requires them to pay a fixed monthly amount.
"They want to retain the option of setting aside whatever amount they choose, based on their current financial situation. At the same time, clients want to play it safe when it comes to investment growth, with most seeking guaranteed returns," said Edit Füzes, head of retail personal insurance product management at Groupama Insurance.
In preparation for the holiday season, the survey aimed to determine the types of gifts that Hungarians prioritise, particularly those that preserve value or demonstrate care for others. According to the survey, one-third of the population has given a gift that retains its value in the long term, which indicates the popularity of this type of gift.
Although jewellery remains the most popular gift, more and more people are opting for modern solutions that demonstrate financial awareness. While investment gold bars or savings accounts were previously considered classic gifts that preserve value, it has become much more popular to give initial funding for a savings plan.
This trend indicates that Hungarians are increasingly adopting the view that gift-giving is not just about bringing joy, but also about securing the future.
