These are the findings of a survey carried out by Aviva between 15 December 2009 and 15 January 2010, amongst over 500 people from across the country, to find out if and how they have planned their family budgets in 2010.
- 63% of Romanians are preparing for a potential drop in income in 2010
- 45% have not planned budgets and do not intend to either, because they don’t know what the year 2010 might bring
- 70% of those who have planned family budgets are married and already have a child, or are making plans to have one.
These are the findings of a survey carried out by Aviva between 15 December 2009 and 15 January 2010, amongst over 500 people from across the country, to find out if and how they have planned their family budgets in 2010.
Family budget planning represents a calculation of a family’s financial possibilities and includes all the outgoings which a family can foresee making in the course of the year.
Whether surprising or not, the year 2010 does not look like being terribly different from the year 2009 – the majority of respondents stated that they do not expect anything positive from the year 2010 and they have calculated for it being worse (a drop in income, potential loss of a job).
55% of those who have nonetheless succeeded in planning a budget in this way have incorporated a potential drop in expenditure. More than that, 63% of all respondents, regardless of whether or not they have planned their budgets, are afraid of a possible drop in the family’s income.
The unpredictable nature of the financial markets (at home and abroad), and the not terribly favourable conditions for credit, have frightened the majority of Romanians and over 60% of them have stated that they will do all that they can not to resort to outside sources of financing in 2010 and to get by without.
The budget for the year 2010 is not looking very good even for the most optimistic of the respondents. Most people have included in their budgets only those outgoings that are mandatory (80%) and they are preparing for the possibility that things will get worse.
Dividing up the budget
High-value purchases (for example, a new house or a car):
- Only 46% of respondents stated that they want to make high-value purchases in 2010 (a car, an apartment, land) but they don’t think that they will manage to do so, whilst 38% of them are not even considering it.
Holidays in 2010:
- 34% of respondents stated that they are not yet sure of whether they will be able to afford a holiday.
Savings:
- 50% are not even thinking about considering saving money in 2010.
“Our surveys show that those who have families are more responsible and more inclined to plan family budgets in this way (70% of those who stated that they have planned their budgets are married and have a child or are making plans to have one). But, although they state that they intend to save and protect their families (65%), sales statistics are showing that they are failing in their planning and it does not get past the stage of talking about it,” says Shah Rouf, CEO of Aviva Romania.
“A healthy lifestyle, a more effective diet, more sport or even giving up smoking – we all know that this is what we should be doing and despite it all we hesitate to take action to follow it up. Financial planning and protecting your financial future are relatively simple things, and what is even more important – we can call on the services of a financial consultant who will do this planning for us, for free,” Shah Rouf went on.
“Aviva’s financial consultants are meeting on a daily basis with 20% more customers, compared with the same period last year, who want to take advantage of free financial advice; they need to discuss financial planning, without any obligation, with someone who can advise them and present them with the options that they have for managing their personal assets.
"And this is grounds for encouragement for us, as it is the first step towards raising awareness of financial and personal needs and implicitly towards a rise in demand for life insurance and savings products in the immediate and near future,” Shah Rouf concluded.
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For further information:
Lavinia Pavel – Brand Communication Coordinator
Telephone: 0723 310 378
E-mail: lavinia.pavel@aviva.ro
Notes for editors:
- None of the findings of the Aviva survey may be reproduced without quoting the source: Aviva Group Romania
About the Aviva Group
Aviva is the oldest insurance group in the world and the largest in Great Britain, dating back to 1696.
Today, Aviva has 54,000 employees and 50 million customers in 28 countries across the world.
The group is the market leader for life insurance and pensions in Europe, leading on the majority of the markets in which it operates.
Aviva manages over £352 billion worth of funds*, putting Aviva in fifth place in the top flight of international insurance companies.
Aviva Group Romania
Aviva Group Romania includes three companies: Aviva Life Insurance, Aviva Management Company for a Private Pension Fund, Aviva Investors Romania (purchased in November 2007).
About Aviva Life Insurance and Aviva Management Company for a Private Pension Fund
Aviva began operating as a provider of life insurance in Romania in 2000, currently holding a portfolio of over 50,000 customers (excluding credit life insurance policies) and managing funds of 27 million pounds. In 2007 Aviva established a pensions company which manages the mandatory pensions fund Pensia Viva and which currently has a portfolio of over 320,000 customers.
About Aviva Investors Romania
Aviva Investors Romania currently administers €15 million in four mutual funds, each based around a different type of investment: Aviva Investors (AI) Intercapital (a shares fund), AI Capital Plus (a diversified fund), AI Orizont (a fixed-income – bonds – fund) and AI Tezaur (a monetary fund). Aviva Investors Romania also administers individual investment accounts.
Aviva Investors Romania has shown throughout the years that it is one of the most dynamic and innovative administrators in the market. The company launched the first commission-free sales fund on the Romanian market (AI Tezaur) and the first bonds fund in Romania (AI Orizont). Aviva Investors Romania is also proud to support the growing investment funds market in Romania.
* according to data recorded on 30 June 2009