Over-51s are no longer 'panic saving'
Published 11/04/2014 | 02:30
OLDER people have eased off on saving as they are now less worried about the economy deteriorating.
But younger people are continuing to build up savings in banks and credit unions to buy homes, a new study has found.
People over the age of 51 were heavily engaged in what is called "precautionary saving" during the worst of the financial crisis between 2008 and up to recently.
Precautionary saving is setting money aside to prepare for a period when income may decline.
But a new Economic and Social Research Institute (ESRI) study has found that the 51-plus age group is no longer "panic saving".
Author Kevin Timoney found: "The main findings suggest that precautionary saving, once a significant feature across much of the population, is likely to have become less prevalent over time."
He said older age groups are now showing a reduced tendency to save money. This is, it seems, because these people are less worried about a new financial collapse.
Many of those between the ages of 36 and 51 are paying down debt, rather than putting money into savings accounts, the research indicates.
And younger people are planning to buy properties and thus saving for deposits.