Rainy days: savers dip into savings

FOR TWO out of every five people the proverbial “rainy day” has arrived during the recession and they are dipping into their savings to compensate for lost income, according to a survey by EBS Building Society.

Aidan Power, head of marketing at EBS, said the research showed what people were doing with their nest-eggs and that for many, “the day when they need to be able to fall back on their savings has arrived”.

The most common reason for accessing savings was to meet general living expenses. This is a marked change compared to six months ago when travel or car purchases would have been the most main use.

Those most likely to be accessing savings were women, those aged between 35 and 50 years of age and those aged over 65.

The average amount being saved each year at €4,400 has also fallen and is 8 per cent below the annual average found in a similar survey by EBS in January.

According to the survey, 20 per cent of adults do not save, while 46 per cent of those who do tend to put aside whatever is left over at the end of the month.

Just over a third, or 36 per cent, save a specific amount each month into a dedicated savings account.

This latter group has seen the sharpest decline at 16 per cent in the amount they save, with periodic savers putting away 7 per cent less per year.

Just over 1,000 adults were interviewed by Behaviour and Attitudes for the survey during April 30th and May 9th, which included quotas and ratings.