Over Two Thirds Of Romanians Could Cope With 25% Wage Cut For Three Months Tops

The survey, conducted between May 1 and May 15 and released Monday, shows 49% of Romanians aged over 16 save money, and savings differ significantly depending on income.

People mostly save for "rainy days" or unexpected expenses, as is the case for 78% of respondents, while 29% save to increase their quality of life in the future and 18.9% want their children to inherit their savings.

However, 17.5% of Romanians would rather spend than save.

Moreover, only 6% of Romanians aged 16 to 64 save for retirement, and this type of savings doesn't vary depending on income.

Thirty-five percent of respondents said they have suffered significant and unexpected income reductions over the past three years, mainly due to job loss or the economic crisis, which prompted reductions or delays in salaries.

Asked what they would do if faced with a 25% wage cut for at least three months, 86% of Romanians would cut spending and 41% would borrow money from friends and family. A third option, to buy consumer goods and pay for them later, was chosen by 24% of respondents.

Many people are unprepared for unexpected events and it would be in their best interest to improve their financial literacy rate, said Sue Rutledge, coordinator of the World Bank's global program for consumer protection and financial literacy.

Moreover, Arabela Aprahamian, the program's regional coordinator, said Romania needs to urgently develop and implement a financial education program, based on a partnership between the Government, the country's education system, financial regulators and financial institutions.

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