Monday 12 November 2018

SSIA holders resist spending splurge after accounts mature

A NEW survey has found that SSIA holders are resisting the temptation to go on a spending splurge.

Instead, people have taken to saving in droves and have a far more mature attitude to future financial security than five years ago.

Conducted by Dublin-based Hegarty Financial Management, the survey of its clients found that those with SSIAs held the view that "what you haven't had for five years you don't miss".

They have decided to continue saving at a similar level in insurance products, pensions, deposit accounts or a combination of these.

Up to now, 80pc of clients have re-invested some or all of their lump sums in either their existing pension plans by using AVCs (Additional Voluntary Contributions) or other means.

Few are availing of the ?7,500 Government option but perhaps this is not so surprising as not all insurers are offering the appropriate products to facilitate this, Jim Hegarty said.

"It seems that the lump sum at maturity is, for most, a highly significant sum of money but not so large that people feel they can waste any of it.

"They are prioritising and utilising it sensibly with many deciding to rid themselves of expensive debts."

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