Friday 24 October 2014

More saving – but we're scared it's not enough

Published 14/10/2013 | 05:00

PEOPLE are more positive about saving than any time since the beginning of last year – but we still worry we are not saving enough, a new survey shows.

One-in-three people believe that it is a good time to save and almost half of those under 50 now put aside money regularly as the economy gathers steam.

The proportion of all people saving regularly increased to 39pc last month compared to 30pc in the same month last year. That's also the highest level since April last year.

Despite the new-found faith in savings, almost two thirds of the population believe they are saving less than they should and just 16pc say that they are saving more than necessary.

The signs of economic recovery are not having the same effect on everybody. The number of people who think it is a good time to spend any extra money has also risen to 9pc from just 7pc this time last year.

People are also slightly less inclined to use surplus cash to repay debts, with just half of the population saying it is a good idea. "There has been a strong rebound in savings over the past three months," said Nationwide UK (Ireland) managing director Brendan Synnott.

"However, this week's Budget is likely to be key in determining whether this continues."

Around 60pc feel that government policy discourages saving, almost exactly the same as last month, while just 11pc believe that government policy encourages saving.

The regular survey of saving habits and attitudes to spare cash, shows that 51pc report they would use the surplus to pay off debts, down slightly from 54pc a year ago. A further 33pc would save the money, the same as a year ago. A further 7pc said they would invest it, compared to 6pc a year ago.

At the same time, negative sentiment towards the saving environment continues to decline and now stands at 39pc compared to 44pc last month and 47pc a year ago. The Economic and Social Research Institute carries out the savings Index research to ensure the indices represent a national sample.

Irish Independent

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