Mortgage and pension costs 'top financial concerns'

Mortgage costs and pensions are among the top financial concerns of higher earners, a new survey suggests.

Mortgage costs and pensions are among the top financial concerns of higher earners, a new survey suggests.

A poll of 500 people in the 'ABC1' social category carried out for Friends First found mortgage costs and pensions are the top current financial concerns and some 30 per cent said a further 1 per cent increase in interest rates would have a "major impact" on their finances.

However, almost half of those interviewed in the Millward Brown IMS phone survey last month felt they were better off this year than last year. Under 35s were most optimistic, with 72 per cent expecting to be better off next year.

Some 67 per cent of those surveyed have a pension, 8 per cent have a regular savings account and 44 per cent hold life assurance products. A total of 20 per cent have invested in a buy-to-let property in Ireland or abroad.

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The survey also revealed that more than four out of five respondents plan to continue saving once their SSIA accounts mature.

Eamonn Twomey, head of marketing at Friends First said the survey showed Ireland's top earners and investors retain strong confidence in the Irish economy.

"Despite rising interest rates and energy costs, Irish ABC1's remain very confident of their current and future economic prospects," he said.

"It is particularly notable that the under 35 age group records the most positive assessment of their situations with almost 60 per cent indicating they are better off than they were this time last year and over 70 per cent expecting to be better off in 2007."

He said, however, that a number of economic concerns emerged from the research and are dampening expectations among higher earners.

Mortgage costs and pensions rank highest on the list of personal finance concerns among ABC1's while childcare costs were only cited as a concern by 5 per cent of the survey group.