Wednesday 21 March 2018

Younger adults 'stepping up saving efforts'

Household income slipped in the first quarter
Household income slipped in the first quarter

Charlie Weston Personal Finance Editor

PEOPLE under the age of 35 are saving harder than older ages groups, a new survey shows.

One in five of those under the age of 35 have stepped up their savings efforts in the past year, a survey conducted by KBC Bank Ireland shows.

This is way ahead of other age groups, the research carried out by Millward Brown indicates.

And the young adults are regular savers, eager to save on a monthly basis, rather than putting aside lump sums in banks every so often.

It is thought that many of the younger people saving are attempting to put a deposit together to buy a property.

Head of retail banking at KBC Bank, Dara Deering, said young people were "out-saving" their older counterparts. "The KBC Savings Barometer results show that Ireland's young people have developed more robust savings habits than their older counterparts.

"Over 21pc of under-35s have increased their savings in the last year, a figure that again exceeds all other age groups."

More than half of all age groups prefer to save regularly.

Ms Deering said: "Over 50pc of savers have an amount they set aside monthly.

"This is especially true of young people in Ireland, with the results showing that half of all under-35s believe that an ability to save monthly is the most important feature of a savings account. This belief is stronger than that found in all other age groups."

The survey also shows that the number of Irish adults with a savings account has remained steady with over three-quarters of Irish adults claiming to have an account.

Parents also see the importance of children developing a healthy savings habit from a young age with research showing that 60pc of parents encourage children to save every month.

Both KBC and Permanent TSB pay 3.5pc a year to those who save monthly. AIB pays 3.1pc.

Irish Independent

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