Romanian employees cut back on savings this year, survey finds

The rising prices also put pressure on the budgets of Romanian employees, who began to cut back on savings this year. Only 3 out of 10 respondents to a recent Bestjobs survey said they manage to put money aside regularly, while nearly 50% save only occasionally.

Of those who did save money this year, 40% saw their savings budget shrink, and 31% managed to keep the same level and pace as last year, the same survey revealed.

When it comes to those who did not receive salary increases to cover inflation, the situation was even more difficult, especially since the salary is the primary source of income for 86% of Romanians. Another 17% also rely on investment earnings, 13% on income from part-time jobs or freelancing projects, and 5% on income from rents.

"The salary is the main source of income for almost all Romanian employees, which strongly influences their ability to save in an unstable economic context. When wage growth does not cover the rate of inflation, the percentage available for savings also automatically decreases," said Ana Vișian, Marketing Manager Bestjobs.

"If in 2022, 45% of respondents were saving 10% of their monthly income and 35% between 11-20%, this year the situation has changed considerably. Only 35% still redirect between 1 and 10% of their monthly income to savings, 21% put aside between 11 and 25%, and those who manage to save more than 26% of their income are very few - 4%," she added.

Most save to have a safety net in case of an emergency (42%), 15% put money from salary aside for later investment in real estate, stock market, commodities or currencies, 13% to secure their living for a while, in case they are laid off, and 11% plan to start a business. Only 9% consider early retirement with the money saved, while another 12% say they want to rely on something other than the state pension.

The percentage of those who expect to be able to retire after age 60 rose from 60% last year to 65% this year. Only 12% hope to be able to retire earlier, between the ages of 50 and 59, according to the Bestjobs survey.

Almost 40% of respondents believe that saving between EUR 50,000 and EUR 100,000 would be sufficient to be able to retire, while 21% estimate that they would need more than EUR 100,000 for a quiet retirement period. The share of those who believe that the necessary would exceed EUR 250,000 is 43%.

The survey was conducted in October 2023 among 1,300 internet users from Romania.

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