Three out of every four adults in Ireland maintain savings or deposit accounts in addition to their current accounts, a new survey has found.
The research, commissioned by Banking & Payments Federation Ireland (BPFI), showed that over one-third of people with savings hold less than €5,000 in those accounts, reports RTE.
The study explored attitudes towards saving and investing among adults in Ireland and highlighted considerable differences in savings levels across age groups.
Younger adults aged 18-34 with savings accounts are the most likely to have smaller amounts, with 45% possessing less than €5,000, reports RTE.
By comparison, 43% of those aged 55-64 and 65 or older say they have saved more than €10,000.
The poll of 1,000 adults, carried out by Amárach Research, also discovered that fewer than half (44%) of respondents own any form of investment, reports RTE.
When asked about their reasons for investing, 64% mentioned building a buffer for a rainy day, 38% wanted to fund short-term spending such as holidays, and 34% were saving for bigger costs like a house deposit or wedding.
Some 39% of investors stated they were putting money aside for unexpected bills or events, reports RTE.
One in five savers (19%) and slightly more than a third of investors (35%) said their goal was to generate income for retirement.
Meanwhile, 39% of investors said they were seeking higher returns than those available from standard savings accounts, reports RTE.
One in five (19%) investors admitted they did not understand the fees and taxes involved, while a similar share (20%) said they did not regularly check how their investments were performing.
The Chief Executive of BPFI said the survey shows that “most savers are prioritising short to mid-term financial needs, such as saving for a rainy day or short-term expenses like holidays, over long-term planning, such as retirement or future income.”, reports RTE.
However, Brian Hayes said the study revealed that older individuals “tend to focus on long-term financial security, including retirement and inheritance”.
With more than half of respondents (56%) holding no investments at all, Mr Hayes said the findings suggest that “there is potential to increase the number of people investing”, reports RTE.
“The European Commission has proposed that Member States, including Ireland, consider developing a new form of Savings and Investment Account.”
“Any new account introduced should be easy for consumers to understand and to open, have clear tax benefits, and give investors freedom to invest as little or as much as they want and withdraw funds when it suits them,” he added, reports RTE.
Mr Hayes also said with one in five consumers indicating that they did not understand the fees and taxes they need to pay and a similar proportion stating they did not closely monitor their investment performance.
“We strongly encourage more consumers to seek information on how their investment products work, to assess the likely costs and potential returns, and to ensure they have the products that best suit their needs,” he said, reports RTE.
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