Savings held by consumers on the increase

The average amount of annual savings held by individuals in Ireland has increased in the first quarter of 2013 with the vast majority of people putting money aside whenever possible, new research has found.

However, according to EBS Consumer Savings Sentiment research published today, there has been a 2 per cent decrease in the overall number of those saving in the period, down to 79 per cent.

A sample of 1,000 people found the average amount of annual savings increased by 8 per cent to €3,152 by the end of the first quarter. The average monthly amount stands at €263.

Four out of five say they are now more likely to save for a large purchase than to borrow, demonstrating a significant change in attitude since the economic collapse.

And while consumer spending has tended to fall away in recent years, some 38 per cent of those surveyed said they are now saving for a specific purchase, the highest proportion found in the research to date.

“From our experience we know that those who have a regular savings plan save on average 50 per cent more than those without a dedicated savings product,” said Richard Kissane, EBS savings manager.

“This is why we put a strong emphasis on the importance of regular saving.”

The EBS Savings Sentiment research coincides with the commencement of a new savings campaign entitled “Your Savings Your Way”.

In relation to young people, it said the proportion of under-25s saving has increased marginally to 94 per cent, the highest level seen in the research so far.

One in five of those surveyed said they agreed strongly in the country’s economic future while, while 41 per cent said uncertainty in the EU made them nervous about spending.