Business Irish

Thursday 8 December 2016

Half of savers are raiding nest egg to pay daily bills

Charlie Weston Personal Finance Editor

Published 23/02/2010 | 05:00

HALF of those who save are being forced to dip into their nest egg to pay for their day-to-day living expenses, a survey has revealed

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The proportion of consumers raiding their savings to meet their daily expenses is on the rise, research commissioned by EBS Building Society shows.

A year ago fewer than a third of savers resorted to dipping into their savings to fund their general living expenses. Now almost half of them are using their savings to pay bills.

And the amount of money being put aside each month by those who describe themselves as regular savers has fallen back.

Regular savers are now squirrelling away €336 a month, compared with €384 a month last year.

This works out at €4,032 a year, compared with €4,608 annually last year.

Younger adults are the most determined to save, with one in six of those between the ages of 18 and 35 saying that they are saving more this year than previously.

This probably reflects the fact that this age group have ambitions to buy a home and are conscious of the fact that they will need a large deposit.

EBS marketing manager Aidan Power said there was an overall increase in the numbers saving, but younger adults were the keenest savers.

Mr Power pointed out that economic instability had meant that as a people we have gone from living beyond our means to being a nation of savers.

"One area of particular concern, however, is the fall in the number of people saving on a regular basis.

''The EBS savings index results show that saving has become very ad hoc."

Mr Power added that a regular savings plan is important to help provide peace of mind as well as building up resources that might be required in the event of an unanticipated problem.

Irish Independent

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