Sunday 25 February 2018

Numbers saving for a rainy day on the rise

Charlie Weston, Personal Finance Editor

PEOPLE under the age of 50 have started to save again as they put money aside for unexpected expenses and put off discretionary spending, a survey from Nationwide (UK) Ireland shows.

Of those who can afford to save, many are managing to save between €50 and €100 per month.

Forty per cent of the under 50s are now saving regularly, up from 33pc in April.

The index, which was compiled for the British building society by the Economic and Social Research Institute (ESRI), was up in May as more people squirrel away money.

The largest proportion of people were saving with a precautionary motive, with 44pc indicating they were saving for unexpected expenses.

Education or training and holidays are the next most popular reasons for saving at 12pc, while saving in case income falls is next at 10pc.

Of those consumers who are able to save occasionally or regularly, the largest proportion, 30pc, save between €51 and €100 a month.

Managing director of Nationwide UK (Ireland) Brendan Synnott said: "The savings index is now at its highest level since we launched in January 2010.

"This month's data suggests recent economic events have influenced consumers into adopting new more conservative behaviours toward spending and saving."

He said a greater emphasis was now being placed on saving for unexpected expenses and discretionary spending is being postponed.

"This trend is more apparent in the under 50s who are more likely to have larger household expenses including mortgages, education and indeed fear of their income falling."

Irish Independent

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