Until recently, retirees were the most numerous group that used payday loans to repair their budget. Today their situation is changing, more and more frequent indexations and higher and higher pensions allow to meet their basic needs. In addition, retirees are helping younger generations today in difficult and crisis situations. What kind of customer is currently a pensioner on the payday loans market? And what does he borrow money for most?
Polish pensioner is getting richer
In today’s uncertain times of the eternal financial crisis, retirement income is almost like winning a lottery. Due to the more frequent and greater indexation of pensions in Poland, their sum is gradually increasing, and thus the standard of living of the elderly is improved. Of course, this is a statistical average and not everyone, although an increasing majority can finally rest peacefully in retirement.
Pensioners financially support children and grandchildren
According to the Jerrel survey of 2017, every seventh pensioner regularly helps his loved ones. Although 59% of people aged 60 years retired report that they do not provide financial support to their relatives, a third of the remaining 41% help their family at least once a month. The average amount of such non-returnable assistance is about USD 431 per month.
Situation of pensioners on the loan market
If the pensions of seniors are getting bigger and bigger, are they still using quick payday loans? Yes, pensioners still borrow money, but mainly for the needs of children and grandchildren! The average sum of credits and loans taken by the elderly to help younger family members ranges from USD 9,700 to 9,900, and for themselves – only USD 6,700.
Mostly the money borrowed is used for current expenses and bills for loved ones, but also for them for renovation, purchase of furniture, household appliances or electronics. Interestingly, in addition to meeting their own needs, pensioners borrow cash to give as a gift for a wedding, baptism or holy communion in the family. For themselves, however, Polish seniors still spend the most on health – medications, visits to specialists or private procedures. More and more, but in comparison with German neighbors, they are still far too little investing in culture, recreation or even travel. A pensioner in Poland still spends his time and holidays on his own plot or in the backyard garden, and he eats mainly at home.