Wednesday 21 March 2018

46pc of people not saving at all - survey

Sarah McCabe

Sarah McCabe

SAVING trends extended a clear annual decline in the amount being saved by all ages in June.

The latest Nationwide Savings Index shows a clear fall-off in regular saving and an increase in the proportion of people not saving at all compared to June 2012.

Some 32pc of people now say they are saving regularly, down from 36pc a year ago.

And 46pc say they are not saving at all, an increase from 43pc a year ago.

Of the people that do save regularly, a quarter are now saving up to €50 a month; 29pc are saving between €51 and €100 a month; a fifth are saving between €101 and €200 and further 25pc save more than €200.

“In the past year sentiment towards saving has decreased considerably as people continue to manage their way through austerity,” said Nationwide UK (Ireland) managing director Brendan Synnott.

The negativity towards saving is different for each age group. Under 50s are most unhappy with the amounts they are putting away; 68pc are saving less then they think they should and only 12pc are happy with the amount they are saving.

Over 50s are more concerned with the savings environment as 62pc believe that government policy discourages saving, an increase from 53pc a year ago.

“We are now seeing clearly diverging opinions being expressed by those aged under 50 compared to those aged over 50.  The younger consumer is clearly not satisfied with their ability to save, presumably due to their on-going day to day expenses and reduced disposable income” said Mr Synnott.

“The over 50s age group are the traditional saver in the economy and this group has seen the return on their savings reduced as DIRT tax has increased and savings rates for the most part have decreased.”

The largest share (46pc) of those surveyed continued to report that they would use any income surplus to pay off debts including their mortgage rather than save. There has however been a slight fall off in this preference, from 51pc a year ago.

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