| 8.1°C Dublin

Small savers are being wiped out

IRELAND'S regular saver, who puts aside €50 or €100 a month, has all but "evaporated", according to new research.

The Nationwide UK (Ireland)/ESRI Savings Index showed increased negativity towards saving.

Brendan Synnott, managing director of Nationwide UK (Ireland), said people are reluctant to save ahead of any budget measures, and that the savings index remains near the all-time low.

"There is a lot of fear out there. There is fear of an increase in DIRT tax and tax rates in general," he said. "The fear leads people to pay down their debts."

"People with lump sums are locking them away, but the man in the street has been wiped out as a saver," said Mr Synnott.

The percentage of savers who report that they are saving less than they should be remains high, at 60pc, but this has declined from 66pc a year ago and 65pc last month.

Just 9pc of people expect to be saving more but some 77pc remain positive about their ability to maintain their level of saving over the next six months.