One-fifth of households struggling to pay bills
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Wednesday November 18 2009
SIX out of 10 households have seen their income drop this year, as income levies, pay cuts and job losses take their toll.
The financial hit has been so hard that one-fifth of households report they are unable to pay all their bills every month.
Thousands of people are struggling to pay their mortgages and credit card bills and meet loan repayments. Almost one-third of households report that the breadwinners in the home have taken a pay cut.
And 15pc of 1,000 people surveyed said they were working reduced hours, putting a further squeeze on household finances.
Dubliners have been hardest hit by pay cuts, with more than a third reporting a reduction in pay due to a wage cut.
The pressures on paypackets and job losses have meant that more than one-fifth of households are unable to pay all of their bills each month, the survey carried out by market research company Empathy for Friends First shows.
Those between the ages of 25 and 34 are finding it hardest to pay their bills each month, with women more likely than men to be struggling financially. Householders have responded to the downturn by cutting back on entertainment. Three- quarters of consumers have decided to pare back spending on concerts, theatre, CDs, dining out and going to the cinema.
Also getting the chop is spending on fashion, while holidays and pension contributions have also being pushed aside in the downturn.
Of those who have cut back on their pension contributions, almost half have stopped contributing to their pension altogether. A large number of those who have cut back on their pension costs have reduced their contributions by between 5pc and 10pc.
Reduced
Younger people have been most affected with almost a quarter of those aged 25-34 years having reduced their pension contributions.
The majority of those surveyed have either a defined benefit or a defined contribution pension while 17pc have a personal retirement savings account.
Friends First pensions sales manager Simon Hoffman said: "It is clear that the financial strain people are experiencing is creating a ticking timebomb where pensions are concerned that we need to address."
- Charlie Weston Personal Finance Editor
Irish Independent
