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Savings

ESRI index showing increasingly polarised saving behaviour

More than half of people surveyed said they are saving less per month than they think they should be saving.

THE PROPORTION of people who feel they are saving enough money increased last month, though the number of people who do not save at all continues to grow.

The Nationwide UK (Ireland)/ESRI savings index rose from 79 points in March to 93 in April 2011 – the first time the index rose for three months.

However, the overall savings index is down on the 103 points recorded for April 2011.

The April 2012 survey saw a 1 per cent increase on the previous month in the number of people who thought they were saving more than they should (3 per cent in April 2012), while 42 per cent say they are comfortable with the amount they are saving (up 4 per cent on April 2011).

However, over half (55 per cent) say they are saving less than they think they should (this figure is down 4 per cent on April 2011).

The percentage of people who are not saving at all increased from 31 per cent to 38 per cent between April 2011 and 2012, while the proportion of people saving regularly also increased – up from 36 per cent to 41 per cent.

Among those who are saving month each month:

  • 13 per cent save up to €25
  • 13 per cent save between €26 and €50
  • 30 per cent save between €51 and €100
  • 24 per cent save between €101 and €200
  • 20 per cent save in excess of €200

Three-quarters of people surveyed said they expect to maintain their level of saving over the coming six months, while 13 per cent said they expect to be saving more.

There was also a drop in the percentage of people who believe this is not a good time to save (down 4 per cent to 40 per cent between March and April), while 54 per cent of people think that government policy discourages saving (down 4 per cent from March).

Managing director of Nationwide (UK) Ireland Brendan Synnott said that saving behaviour is “polarising”:

Some people appear to have adjusted their spending and saving behaviour according to their specific circumstances and an increasing proportion of people are happy with the amount they are saving.

Although it remains a concern that a large proportion are not saving at all or are incapable of saving at present.

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