A new study developed by ConsumerChoice on population aging in Portugal reveals a strong national paradox: although 94% of respondents over 45 recognize aging as a real concern, only 20% of consumers of working age claim to currently be financially preparing for retirement, beyond mandatory contributions to Social Security. The increase in life expectancy is leading Portuguese people to think more about the future, but this concern has not yet translated into effective financial preparation.
This apparent passivity contrasts with the strong distrust in the public pension system. According to the report, 80% of those interviewed consider that the public pension is not, and will not be, sufficient to ensure a good quality of life in retirement. When asked about the priority conditions for their own aging, health leads the responses with 90%, closely followed by financial security with 61% and autonomy with 58%.
The lack of financial literacy is identified as the main barrier to the transition from concern to action. On a self-assessment scale of 1 to 10, Portuguese consumers rate their level of financial knowledge at only 6.6 points, acknowledging that there is a wide margin for improvement in skills related to savings, investment and retirement planning.
This scarcity of tools and the associated lack of confidence generate real consequences in individual wealth management throughout life. The study reveals that 56% of respondents confess to having made a wrong financial decision in the past due to lack of information or adequate knowledge, while 57% admit to having already faced difficulties due to this deficit.
