A rise in the number of under-50s who believe it is a good time to save has been linked to uncertainty over Tuesday’s budget, rising house prices and Brexit.

The Nationwide UK (Ireland) Savings Index, which measures overall consumer sentiment towards saving, rose to 125 in September, its highest reading since March, with the under-50 age group driving the upswing.

Within the sub-index covering savings environment, a record level of under-50s said it was a good time to save in September, posting a reading of 175.6, a jump of 26 points from the previous month.

The level of under-50s who believe Government policy encourages spending stood at 120.4 points in September, which was nearly double the July reading.

The index also revealed there was a drop in the level of under-50s who felt good about the amount they can save.

In September there was a rise in the number of that age group who said they were able to save a little less than they should. Those aged over-50 were also more negative in relation to how much they can save.

Reaction

“Again we are seeing a rise in the number of people in

Ireland

who feel it is a good time to save. This is a reaction not only to the ongoing uncertainty around Brexit, but about what the upcoming budget will mean for household finances,” said

Brendan Synnott

, managing director of Nationwide UK (Ireland).

“So far the Government has signalled that there will be no significant financial improvements for households in October’s budget, which isn’t what most will want to hear after a long period of austerity and cuts to income in real terms.

He said it would be interesting to see how the measures in the budget impacted on the survey and people’s perceptions in the next survey.