Tuesday 24 October 2017

One-in-five of us is failing to save for our long-term needs

And almost half of those polled don't believe their financial plans will support them in years ahead, says Charlie Weston

MORE than one in five people have nothing in place to provide for their future, a survey reveals.

The percentage who have made no provision for the long term is 21pc, up from 15pc in 2009, according to a survey conducted by Research Plus for investment company Standard Life.

And the number of adults with cash or savings accounts has also dropped down to half of those surveyed, from 56pc in April 2009.

Fewer people now say they have a pension -- with just one in four having a retirement fund to look forward to when they stop working.

Not surprisingly, the numbers with stocks and shares and the amount of people who hold bonds have all declined.

Some 1,000 people were surveyed, with most responding that the tough economic climate has hit their financial confidence hard.

Some 44pc of those who took part agreed with the statement that they no longer felt that their financial plans would support them in the future. However, 42pc felt reasonably confident that their financial plans would indeed support them in the coming years.

But the dreams and aspirations of consumers have not changed much between April 2009 and October this year.

A majority of people still aim to spend more time with people who are important to them. Another wish is to travel more.

Learning new skills, such as taking up a hobby or mastering a language, also figure highly in the aspirations of people for the long term.

But getting to retirement is set to take longer, with most people not expecting to retire until they are 65.

When it comes to specific investments to achieve long-term financial aims, property is still popular despite this country experiencing the second most severe property crash in the world (Japan has had the worst).

More than one-third of people who responded to the survey reckon it is a good time to buy an Irish buy-to-let. This is up from 26pc in 2009.

Overseas investment properties have also become more attractive, according to the survey.

Becoming less popular are pension plans, additional voluntary contributions and shares, as fewer adults think it is a good time to invest in these.

Commodities remain in vogue, with more than half of those surveyed considering it a good time to put money into a regular savings account.

The results of the survey are based on an independent online survey conducted by Research Plus for Standard Life.

Some 1,001 adults in the Republic took part in it at the end of September and early this month.

Irish Independent Supplement

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