More than three quarters of Portuguese say they are pessimistic about economic developments. Therefore, big decisions like changing jobs, getting married, wanting to have children, buying a house or a car are not planned for 2021, as a study shows.
The study “Lifestyle and Investment Decisions of Portuguese Families in 2021” tried to understand “what are the main expectations of Portuguese families for 2021 in the negative context of covid-19” and also showed that “the financial unease was exacerbated by the pandemic” .
With 76.2% of respondents admitting being pessimistic or very pessimistic about the development of the Portuguese economy, the work showed that “this will be a year of stagnation in terms of major changes in life and investments”.
“Right from the start, 77.9% of those surveyed did not plan to change jobs, and 84.7% even stated that they were not looking for a new job. When it comes to family decisions, marriage will not be an option for the majority and children will not happen in 2021 for 94.1% of those who already have them and 89.8% of those who have no children, ”he concludes.
Similar values were found in investment decisions such as buying a house or a car: 82.8% of those who do not have a permanent home will not try to buy it in 2021, and 91% of those who already have it will not a new purchase; In terms of the car, 85% said they do not intend to make a first purchase in 2021, and 94.2% of those who already have their own vehicle said they do not want to invest again.
In 2021, 71.3% of respondents also showed no interest in investing in financials, and for the 28.7% who admit it, stable financial instruments (such as savings or treasury certificates) are the most sought-after options. especially from the older generations (the so-called “Baby Boomers” from 61 to 78 years and “Generation X” from 40 to 60 years).
And although 2021 will be a year when few will want to invest, the study shows that when analyzing the propensity of different generations, baby boomers will be available to spend more money on both financial investments (more than $ 61,000 on average), such as when buying a car (more than 39 thousand euros). For the purchase of living space, it will be “Generation X” to spend more with an average investment of more than 482 thousand euros.
The study’s conclusions also note that “the Portuguese outlook for 2021 has been affected by the increase in their financial complaints”: 19.6% of respondents said that their financial situation was uncomfortable or very uncomfortable than before the pandemic only 7.3% said it.
There was also a decrease from 66.6% to 52% among respondents who stated that they were satisfied or very satisfied with their finances.
The perception of Covid-19, which more than 85% of respondents classified as a dangerous disease with serious health consequences, also justified the Portuguese’s lower propensity to take risks related to investments and important life choices.
The work of ISAG-EBS and CICET-FCVC particularly highlights the so-called “millennials” generation (18 to 39 years) and comes to the conclusion that “contrary to the growing trend, mobility is currently being given up” characterizes it ”.
“If we compare it to other generations, millennials will continue to be the best available to change jobs. In 2021, however, only 31.6% admitted this, a very low number if we believe that frequent job exchanges with the search for new challenges and opportunities are characteristic of this generation, ”explain the scientific coordinators of CICET-FCVC and ISAG – European Business School teachers Ana Pinto Borges and Elvira Vieira, cited in a statement.
The researchers also find that “85.9% of those who say they want to change jobs are looking for work for others, devaluing business start-ups and entrepreneurship that have increased among millennials in recent years “.
According to the study, the work-level risk shifts to financial investment in the case of ‘millennials’:’ Although only 32% of ‘millennials’ want to invest in finance in 2021, this is the generation most admitted to like this in risky products To do cryptocurrencies, “they stressed.
The study “Lifestyle and Investment Decisions of Portuguese Families in 2021” was carried out between December 2020 and February 2021 as part of an “online” survey with a sample of 1063 respondents living in Portugal.