Perceived Financial Needs, Income Sources, and Subjective Financial Wellbeing in an Emerging Market

Written By: Halil Kiymaz and Belma Öztürkkal

This study investigates perceived financial needs and subjective financial wellbeing using data from a national survey of 2,567 households in Turkey. Financial needs are measured by consumer perceived ability to meet current living expenses in the short-term as well as their assessment for the retirement security in the long-term. We also investigate how income sources are related to subjective financial wellbeing. Findings show that households’ daily concerns including the inability to meet short-term expenses including health care, daily living expenses (food and utilities), and the inability to maintain the existing living standard are highly significant factors in explaining their subjective financial wellbeing. We also find that having enough income during retirement and ability to find a job in the future are positively related to subjective financial wellbeing. Finally, when households’ incomes are from work, rental properties, family, and pension, they feel more financially secure.