Irish Adults Favour Short to Mid-Term Saving as Investment Uptake Remains Limited
New research into personal finance habits shows that most adults in Ireland maintain savings or deposit accounts alongside their current accounts. The survey, commissioned by Banking and Payments Federation Ireland, indicates that three quarters of respondents have set money aside, although the amounts vary widely.
A significant proportion of those with savings hold smaller balances. More than one third reported savings below €5,000, with younger adults far more likely to fall into this category. Among those aged 18 to 34, nearly half have less than €5,000 saved. At the other end of the scale, 43 percent of people aged 55 to 64 and those over 65 have accumulated more than €10,000.
The study, involving 1,000 adults, also examined attitudes to investing. Fewer than half of respondents hold any form of investment product. Those who do often cite short-term priorities rather than long-term wealth building. The most common reason for saving or investing is general precaution, with many participants aiming to cover unforeseen expenses. Others are putting money aside for holidays or significant future purchases such as a home or wedding.
Longer-term planning appears less common. Only one in five savers and around a third of investors stated that they were preparing for retirement income. While some investors hope to achieve higher returns than those available on standard savings accounts, many admit they have gaps in their understanding. Around one in five said they do not fully grasp the associated fees or tax implications, and a similar proportion do not monitor the performance of their investments.
According to BPFI, these trends suggest that short and mid-term financial needs continue to take priority for most people, particularly among younger adults. Older respondents appear more focused on retirement and future financial security. With more than half of those surveyed holding no investments at all, there is scope for broader participation if people are provided with accessible products and clearer guidance.
The organisation noted ongoing discussions at European level on the development of a new savings and investment account that could offer greater clarity, tax advantages and flexibility. It also encouraged consumers to improve their understanding of the costs, potential returns and suitability of any financial products they hold.
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