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New financial security index: Danes generally feel financially secure

Danske Bank has conducted a survey of financial security in Denmark and is now releasing a new financial security index. The index shows that Danes generally feel financially secure. This tendency is greatest among older people and lowest among young adults aged 18 to 24. On the other hand, young adults are the most optimistic about their future financial situation. You can read more in the report, “Danskernes Økonomiske Tryghed” (The Danes’ Financial Security), which was released today (in Danish).

With an average score of 6.7 on a 10-point scale, Danes generally feel financially secure regardless of age. Those above the age of 65 scored highest (7.1), while the 18-24 age group scored lowest (6.4).

The most financially secure Dane in 2017 is typically a married man over 65 living in northern Jutland.

“It is perhaps a little surprising that the average level of financial security for Danes is not higher,” says Louise Aggerstrøm, Consumer Economist at Danske Bank. “The report shows that most Danes’ financial circumstances have improved sharply, while unemployment is low and the housing market is sound. The Danes’ financial security is above average but not close to the top of the scale.”

Insecure about retirement savings
The report shows that financial security increases with age. This is related to lower concerns about debt and assets, for example, among Danes over 65.

“Although their income is lower on average, the elderly have a clearer idea of where they stand,” continues Louise Aggerstrøm. “As a retiree, one needn’t worry about the possibility of unemployment and the consequences it can have on one’s finances. The lack of security among younger adults is related to their current financial situation. They worry about the labour market and job opportunities, among other things. Nevertheless, they are generally very optimistic about having better finances in the future, while optimism about a better financial future declines among those aged 50 to 60.”

Louise Aggerstrøm points out that the report shows that one factor that causes insecurity for many Danes is retirement savings. Of those who have not yet retired, only one fourth are confident that they are saving enough for their retirement.

More than dry figures
The purpose of the report is to give a comprehensive picture of the Danes’ finances. The report shows how we feel about our finances and also presents an image of what we dream about and worry about. In addition, it contains a number of facts and analyses about the trends in our disposable income, savings and consumption broken down by region and age bracket.

“We hope that the report can help start a dialogue about what financial security is and what it means to us,” says Louise Aggerstrøm. “We think that is important because financial security is the foundation for many decisions, dreams and worries.”

In conjunction with the report, Danske Bank launched a new section on its website where you can investigate the figures and compare your own degree of financial security with others’ ( - in Danish).

Key findings

  • The Danish economy has recovered since the financial crisis. We are seeing rising economic growth, housing prices and employment in many parts of the country.
  • The large majority of people have got more money than before. This is partly because incomes have risen and many have a greater surplus in their finances because of lower interest rates, among other things.
  • The recovery in consumer spending, which is broadly based by age, is strongest among young adults. Men generally spend more than women.  
  • Danes generally feel financially secure. On average, Danes score 6.7 on a 10-point scale of financial security.  
  • Finances are the third-most-worrisome subject for Danes after serious illness and work and job opportunities.
  • We dream the most about travelling more and taking more time off from work. The most common dreams after those concern achieving a personal goal or getting a job or a new job.

Facts about the index
The index is based on responses to a number of questions about how financially secure we feel. The questions were posed to 5,018 Danes over the age of 18 by the YouGov research institute in February and March 2017.

The index is based on a scale from 1 to 10 in which 1 indicates the least financial security and 10 indicates the greatest financial security.

Louise Aggerstrøm Hansen, Consumer Economist, tel. +45 45 12 85 31
Morten Herrup Poulsen, Press Officer, tel. +45 25 29 85 68