Financial confidence hit a new low in recent months, hit by increased taxes and concerns about the level of sovereign debt.

According to Standard Life's quarterly survey, the financial confidence fell by almost two points to 50.9 per cent.

Those living in Dublin were hit the hardest, with confidence falling by 4 per cent to 51.7 per cent. However, those in the 65 years and older age group were the most financially confident, scoring 62.5 per cent in the survey. In contrast, those aged between 55 and 64 saw financial confidence fall by 3.3 per cent.

The most financially secure region was Leinster, excluding Dublin, which scored 52.4 per cent. Those living in Munster scored the lowest, at just 49 per cent.

"People's pay packets were severely impacted by increased taxes since the start of the year - a reduction in disposable income has no doubt affected their confidence," said Brendan Barr, head of marketing with Standard Life. "There was also speculation about the extra capital required by the banks and continued concern about our sovereign debt."

Standard Life surveyed 1,000 adults over the period March 25th and April 4th. The index, which began in June 2007, peaked at 66.7 in March 2008.