90% of Consumers in Asia Pacific Strive to be “Rainy Day” Ready
They can live on their savings for 5 months on average, in the event of loss of all household income
TWEET: 90% of #APAC consumers strive 2 be rainy day ready; but some struggle 2 save – Latest #MasterCard money mgmnt surveyhttp://mstr.cd/1wN0BlM
Ninety percent of people in the Asia Pacific region are planning to either save the same or more over the coming six months found the latest Consumer Purchasing Priorities – Money Management survey, released today by MasterCard. Forty-three percent of consumers, including those in Malaysia, the Philippines and Thailand, plan to save more in the coming months, while another 47%, led by consumers in Indonesia, Japan and Vietnam, plan to save the same amount.
Interestingly, the survey also found that while almost 90% of Asia Pacific consumers say they understand budgeting, close to 40% of those surveyed confess difficulty in setting money aside and nearly one-third of respondents have problems keeping up with bills.
Additional survey findings include:
- Consumers are conservative with their money – 72% of respondents are driven to save for precautionary purposes.
- On average, over the next 6 months, Asia Pacific consumers plan to save close to one-fifth (19%) of their total income.
- Consumers in the region are saving for the future; with 45% saying that investments are the number one reason they save; 40% citing retirement; and 36% citing that buying, upgrading, or renovating their home or property is the driving reason.
- And consumers in the region estimate that they can live on average for 5 months on their savings, in the event of loss of all household income.
“The region is known for its strong savings culture so it is not surprising to see that the majority of consumers are conservative with their money. We believe that the desire to set money aside for a rainy day reflects the current economic outlook of the Asia Pacific region which is expected to see moderate GDP growth of 5.5% in 2014, largely helped by China’s expected 7.4% expansion, according to the International Monetary Fund,” said Pierre Burret, Head of Delivery, Quality & Resource Management for Europe, Asia Pacific, Middle East & Africa, MasterCard Advisors.
“Consumers will continue to prioritize saving – protecting future assets, like retirement funds, and cutting back on big ticket purchases to ensure future financial stability,” he added.
The MasterCard Survey on Consumer Purchasing Priorities is released twice a year and provides valuable insights into consumer outlook on spending priorities in the categories of travel, dining and entertainment, education, money management and luxury shopping. The latest survey was conducted across 27 countries within Asia/Pacific, Middle East and Africa between July 2014 and August 2014. The survey and its accompanying reports do not represent MasterCard’s financial performance.
MASTERCARD AND ITS SUITE OF RESEARCH PROPERTIES
The MasterCard Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Index of Consumer Confidence, as well as the MasterCard Index of Women’s Advancement, MasterCard Survey on Online Shopping, MasterCard Index of Financial Literacy, and the MasterCard Index of Global Destination Cities. In addition to the indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004. MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardAPand @MasterCardNews, join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.
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