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Economic gloom linked to lack of budget planning

MORE than half of consumers believe their financial situation will get worse this year, a new survey shows.

A similar amount expect that they will not be able to cope financially over the next 12 months, according to the survey of 1,000 people commissioned by Irish Life.

On average, the respondents said it would take 18 months before the financial worst would be over for them and their families.

But more than half (55pc) said it would take two or three years before their personal economic situation would get any better.

People aged between 35 and 44 were most worried about their personal finances, while more mature adults (aged more than 55) were the least concerned about their monetary prospects for the rest of this year.

Nearly half of adults have still not set any financial goals. However, those who have done so have a more confident outlook.

Of those who see their financial situation stabilising or improving, more than three out of every four say they have done a review of their finances and set financial goals and budgets.

This compares with less than one in two of those who believe their financial position will worsen.

Karl Symes, marketing manager at Irish Life, said: "The vast majority of those who feel more confident have recently done a full review of their finances and have put goals in place to manage their money.

"This shows the benefit of putting some time into keeping control of your finances."

See also Your Money, pages 34, 35, 38, 39

Irish Independent