Thursday 19 April 2018

One in three people under 35 can't afford to save

Close to a third of under 35s say they spend all their income
Close to a third of under 35s say they spend all their income
John Mulligan

John Mulligan

Most Irish people find it difficult to save money and 30pc of under-35s say they spend all their income.

A new study on saving habits from KBC reveals that although 77pc of Irish consumers have a savings account, 60pc find it difficult to spare enough money to put aside for a rainy day or special occasion.

Unsurprisingly, those who find it most difficult to save are aged between 25 and 35 years old, have children and are paying a mortgage.

The survey of 500 consumers, conducted by research agency Millward Brown on behalf of KBC, found that 21pc of consumers save when they can, with 12pc of them saving for a holiday as summer approaches.

That compares with 7pc who were saving for a holiday five months ago.

Just 8pc are saving for their children's education, while 6pc are saving for a house and 8pc to secure a long-term nest egg.

And even though more than three-quarters of consumers have a savings account, only one-third of those surveyed agree that Irish people have good savings habits.

Just over half of the 60pc of people who find it difficult to save say they need to earn more money before they can, and 35pc pay off debts first. A quarter of those squeezed enough to find it difficult to save say they spend all their income with nothing left for the piggy bank. Just over one-fifth say they always dip into their savings at the end of the month.

Punitive

KBC's head of retail banking, Dara Deering, said that despite the perception that Irish people don't have good savings habits, the percentage of savers has remained "very consistent" in recent years and that many people set aside a regular amount to save.

The Government has raised deposit interest retention tax (DIRT) in recent Budgets. It now stands at a punitive 41pc, compared to 33pc last year and 30pc in 2012.

Irish Independent

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