97 percent of society has hit a savings glass ceiling due to inflation

By: Trademagazin Date: 2023. 07. 11. 11:21

Fewer than 300,000 households in Hungary have more than HUF 3-5 million in savings, but it is increasingly difficult to get into this group. For 97% of the society, the long-lasting inflation, lack of savings and lagging economic growth may mean that the ‘Hungarian dream’ becomes unattainable. Hundreds of thousands of households are faced with the fact that they are no longer able to set aside their income for savings and thus break through the glass ceiling of the wealthy upper-middle class, according to Blochamps Capital’s Premium and Affluent Customer Segment Research, prepared for the first time in Hungary.

Although the highest wealth decile was able to show an increase in wealth, it is increasingly difficult to get into the top 10% (or rather 3%). The premium, the affluent and the private banking layer account for only 630-650 thousand accounts, or approximately 300-350 thousand people. These wealth layers have stable savings and fixed investment opportunities. The other Hungarian households are in a much more difficult situation, as they cannot put aside enough on an income basis to be in a stable investment and savings situation.