93% of adults in Malta are active savers

The Organisation for Economic Cooperation and Development (OECD) issued the OECD INFE 2020 International Survey of Adult Financial Literacy. Malta is featuring in this survey for the first time, where it is being reported that 93% of Maltese adults are active savers.

Malta participated in its first OECD INFE Survey on Financial Literacy in 2018 through an ESF co-financed project. The survey was undertaken by ĠEMMA on behalf of the Office of the Permanent Secretary within the Ministry for the Family, Children’s Rights and Social Solidarity. In carrying out the research, 1,000 respondents were surveyed. As a result of this survey, ĠEMMA is in possession of a wealth of micro-data, which it has made available for research purposes upon request.

The table below presents a number of the key findings of the OECD INFE 2020 carried out by ĠEMMA in 2018.:

Planning and Managing FinancesThe most popular way for keeping track of their household finances is by keeping a note of their spending – 46% of Maltese adults
 35% of Maltese people prefer reading about investment products in Maltese and another 35% prefer reading such documentation in English.
Active Savings and Financial ShocksThe study shows that 93% of adults in Malta are active savers, who save in different ways. 84% of adults in Malta save in a savings/deposit account.
 72% of adults in Malta are able to face a major expense equivalent to their income without having to borrow money or ask family members for help.
Financial Goals45% of adults in Malta do not have a retirement plan.
 56% of adults in Malta are like to rely entirely on their government pension at retirement age.
 Only 15% have a private pension plan.
Making Ends Meet64% of adults in Malta have not encountered a situation in which their income did not cover their living expenses in the last 12 months. 
 Of the 33% who experienced a situation where income did not cover expenses, 86% used existing resources such as cutting back on spending.
Choosing and Using Financial Products and Services31% considered various options from one company to choose their pension fund. 29% did not consider any other options at all.
Attitudes and Behaviour62% of Maltese people keep a close personal watch on their financial affairs.
 3 in 4 adults in Malta do not have too much debt right now, whilst 13% said that they do.
 95% of adults in Malta always/often pay their bills on time.
 Some 80% of adults in Malta always/often take careful consideration of whether they can afford to buy something prior to buying it.
 Some 95% of adults in Malta always pay their bills on time, whilst a low 1% never pay their bills on time.
Level of Financial Knowledge44% rate their overall knowledge on financial matters as average.
 21% consider themselves to possess a very high/quite high level of overall knowledge on financial matters.

The Minister for the Family, Children’s Rights and Social Solidarity said that ĠEMMA is working hard to promote financial literacy in Maltese society.

“Our aim is to invest more in these projects so our families, children and the elderly can benefit from them while learning how to save for their future,” Minister Michael Falzon said.

The full report was published at a seminar organised by ĠEMMA in November 2018, and can be downloaded from: https://gemma.gov.mt/wp-content/uploads/2019/05/MPU-MFCS-Financial-Literacy-Study-Research-Findings-Report-storm-coverpage.pdf.