The constant worry about money and the feeling of not having a financially secure future affects up to 50% of Spaniards between 55 and 64 years of age. This is demonstrated by the recent study presented by the Observatory of Family Savings (OAF), promoted by Fundación Mutualidad Abogacía and Fundación IE: “Knowledge and financial habits of the elderly population in Spain”.
The financial factors that affect people in the decade prior to retirement are diverse. “On the one hand, there is the instability and uncertainty related to the labor market,” explains Laura Núñez-Letamendia, director of the OAF and one of the authors of the report. “Professional careers are unstable and long-term unemployment among those over 55 is higher than the population average.”
In addition, there are other circumstances that prevent better money management. “Older children have difficulties becoming independent and remain in the family unit. 25% of young Spaniards, between 29 and 35 years old, live at home with their parents”, recalls this expert. “There is also uncertainty regarding the future of pensions, in terms of amount, retirement age, etc.”
This segment of the population, which suffers greater financial stress, is the most neglected in terms of social policies. “There is aid for young people, retirees, families with minor children, single-parent families…”, lists the director of the OAF. “But this group of 55 to 64 years is the great forgotten of social policy.”
On the contrary, according to the study, the percentage of people over 65 with financial stress is low, around 15%. The report points to their greater knowledge of financial concepts and specific factors, such as the fact that 71% own a home with the mortgage already paid off, compared to 57% of the population between 55 and 64 years of age.
The results show differences in how women and men perceive financial stress. The feeling of not having a secure future and of economic deprivation is greater in women (50% of women compared to 40% of men), although the feeling of extreme scarcity and extreme monetary stress seems to affect relatively more men.
Laura Núñez-Letamendia points to gender stereotypes that affect both genders. “Traditionally, women have been in charge of the family budget and the shopping cart, and men have dealt with negotiating mortgages with banks and making decisions related to managing savings.”
This division of tasks implies that each one specializes in a subject, which ends up affecting the management of their money. “I think this has to change,” says the director of the OAF. “When a loan is taken by two people, both must take responsibility for the decision and be equally informed and educated about the implications and potential consequences. And the same, regarding the investments that must preserve and make profitable the family patrimony”.
The solution, according to this researcher, comes from providing equal training for men and women. “A very suitable channel, given the current massive incorporation of women into the world of work, could be through financial training offered by the companies themselves within their CSR policy.”
