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AND SO WE welcome a new year, and with that, hopefully, new opportunities for your finances.
Traditionally, this is the time of year when we take a deep breath, shake off the excesses of Christmas and try to better ourselves for the next phase of our lives.
As 2025 kicks off, there is a sense of confidence and growth in the air in Ireland. Budget 2025 didn’t offend in any great way and brought some welcome relief for workers and inflation has been headed off at the pass.
So, let’s examine how things are looking and how you can take advantage of this buoyancy and make sure you have something to show for it come this time next year:
If you haven’t seen the winter sun for a fortnight, it mightn’t feel this way, but the country is in good shape. Compared to many developed countries, people in Ireland are not deeply divided in political terms, while unemployment is lower than a year ago, and nudging the 4% mark, not far from the lowest ever rate.
And while Ireland, along with Portugal, Italy, Greece and Spain were once derided as the PIIGS of Europe – now the PIIGS are flying. The latest figures show that Ireland recorded the Eurozone’s highest growth rate while France struggled to meet its budget and Germany struggled to rekindle export-led growth.
It took a lot of pain to get here, and the side effects — like clapped-out infrastructure and nosebleed housing costs — are still painful. But if you are looking to build your career, enjoy your money, or generally get on with things, Ireland is a better place to be than many right now. That’s a tailwind for your finances.
One of Ireland’s quieter successes over the last two years has been damping down inflation. From a peak of 9.2% in October 2022, inflation is now at 1.0%. Wow, what a difference.
The root cause here is external to Ireland: the fall in energy costs, and the knock-on effect on sectors like retail, leisure and manufactured items like shoes and clothes.
However, one cost that has failed to budge is the cost of housing. House prices rose around 10% in 2024, and there are forecasts for further increases this year, driven by population growth, slow housing completions and falling interest costs. It’s no better in the rental sector, where a dearth of accommodation options harms our ability to attract skilled workers and pushes rental costs to the limits of affordability. For all the talk, don’t expect an improvement here anytime soon.
Most people will also enjoy a bump in net salary as tax bands adjust from January. If you’re single and paid €44,000 or more, a further €2,000 of your pay falls into standard rate tax (20%). That’s an extra €400 a year in your pocket.
Changes in much-hated Universal Social Charge will deliver an extra €231 annually for a worker on €44,000. Tax credit tweaks will also help your bottom line.
Because inflation is falling, these tax cuts will deliver a real increase in your wealth. Make sure you do something with it. Think about saving or investing the increase or paying down your mortgage more aggressively.
Falling inflation is less good news for your headline salary. Low unemployment does offer some bargaining power and scope to move jobs. But for most of us, the time to negotiate decent inflationary increases in salary has slipped past.
In certain sectors, such as IT and professional services, demand has clearly reduced from a couple of years ago and pay rises are minimal or non-existent. Intel in Leixlip cut around 15% of its workforce in October. That’s linked to Intel’s global problems – but it’s a reminder of how things can change very quickly.
The exception is the minimum wage. That rose from €12.50 to €13.50 per hour, on 1 January. Clearly, this will help many low-paid people. But an 8% increase is far above inflation and is barely sustainable for many businesses and charities. We need an economy that can create entry-level jobs for people at an affordable cost for employers.
We can take a lesson here from Northern Ireland. There, the minimum wage rose to around €13.73 in April 2024, and employer national insurance (the equivalent of PRSI) will rise 1.2% from April this year. As a result, service businesses are cutting back opening hours and slowing down hiring because labour costs have simply become too expensive.
That affects all of us — watch out for similar problems in the south this year in retail, accommodation, food and caring sectors.
The new year is a good time to critically review your pension provision. Is it going to pay you a reasonable income when you stop working? If not, what’s the plan to fix it?
2024 was a strong year in investment markets – and there are reasons to be positive on prospects in 2025. Global stock markets rose over 20% last year. With luck, investment returns will have done some heavy lifting for you over the last twelve months. Make sure you’re getting in on the action. And if you’re not, look to change your funds, your plan, or your advisor – or maybe all three.
The European Central Bank reduced interest rates four times last year, to the current 3%. Further cuts are near-certain.
That’s good news for your mortgage and other debts, where the worst of the spike in monthly payments is likely over.
It’s not positive for your cash deposits, though, where banks pay little or no interest. In June 2024, €140,368,000,000 of Irish households’ money was sitting on deposits in banks, receiving paltry interest. The number is up 46% over the last five years. That’s a measure of our rising wealth – and a missed opportunity.
As interest rates continue to fall, if you want to achieve meaningful growth in 2025 and beyond, you’ll need to take some investment risk with your money. If it’s cash you don’t need for three years or more, it’s easier than you think to put a plan in place to invest regularly.
No doubt this year will bring its share of ups and downs. Holding cash savings is an important way to protect against the unexpected. But if your circumstances are improving in 2025, consider ways to broaden your resilience and build your wealth through your pension, investments, and paying down debt.
Happy New Year to all.
Ralph Benson is co-founder and head of financial advice of online investments and pensions advisor Moneycube.ie.
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Everything should be based on merit and not representation. If you’re good for the job, you’re good for the job; if not, then you’re not.
@Michael Ryan: Only 22 women have been good enough since 1919?
@Michael Ryan: This, like so many other things is not really an issue. It’s just a political tool.
@Michael Ryan: Aren’t we talking about people we consider to be not great at their jobs?
@Michael Ryan: If it was on merit, there would only be one woman in Cabinet, fact, McEntee and Foley would not make the cut
@Michael Ryan: but… so many useless leeches.
@Brendan O’Brien: they should try and work harder
@Michael Ryan: then why didn’t women get all the jobs instead of all men bar 3? The women have more merit than all the men in cabinet. Sure there hasn’t even been one women as Taoiseach since the foundation of the country. Just all “merited” men? Men are a DEI pick.
@John Nolan: Norman Foley is sus
@Brendan O’Brien: But, how do we know if there aren’t dozens more ministers (not to mention presidents), secretly identifying as women.
@Thomas Sheridan: There’s definitely at least one..
@Brendan O’Brien: is it that simple yeah? I wish I lived in your world where it was either one or the other…..
@Louis Jacob: that’s no way to speak about Hamas Harris…..I sense an attack of the vapours.
@Brendan O’Brien: according to all the male Taoisigh.
@Michael Ryan: Precisely. The disproportionate number of men suggests that some of these men are not getting the job on merit. If the best person was getting the job every time then you’d expect a much more even split.
@Michael Ryan: but is Michael himself good for his job.
@Brendan O’Brien: you could argue even less
@Brendan O’Brien: Well since men are better as leaders (hunter gatherer) and women are naturally better at caring roles. (Caring for offspring). Yes
@Michael Ryan: that would get rid of most of the TDs
If there are women talented enough to get a cabinet seat they will get one. There seems to be an assumption there must be a 50/50 split. Please tell me why?. If women were promoted on talent alone then can someone explain how one of the most incompetent Justice minister ever seen here was a woman. You can’t have a job based purely on your sex. You need something extra.
@Gerry Lamont: McEntee got the Justice Ministry on her FG political pedigree, and certainly not on her competence!
@Gerry Lamont: Maybe the women aren’t devious enough or corrupt enough for the new government.
@Clare Power: Hey, you haven’t met my mother in law *adjusts tie*
@Clare Power: these men think that all those men in cabinet were more qualified than every single woman. Typical uneducated logic
@Clare Power: You are actually on to something there, women don’t crave power and are less ego driven than men. Hence the male heavy presence in most governments. Politicians have to be devoid of empathy and integrity to get into the top positions.
@Gerry Lamont: I’d have worded that last sentence differently.
@Gerry Lamont: Because the EU’s first Gender Equality Strategy sets ambitious goals and actions to achieve a gender-equal Europe by 2025.
@Clare Power: or maybe they just aren’t qualified? Or maybe they are too emotionally driven? Or maybe they are not competent (we saw this with Foley & McEntee)
Don’t even know why this is an issue. The majority in the daily cannot (more accurately : will not) define what a woman is so what’s the problem – there’s no difference between the two so it shouldn’t matter.
@Clare Power: women aren’t devious enough?!……. seriously? Nice generalization….. selective sexism.
As a woman I find it extremely patronising and pathetic when ones like MaryLou & MSM going on about diversity and not enough women blah blah…I couldn’t give a hoot, it should be the best person that matters…end of! ( but most of them can’t define a woman so I don’t really know why they’re complaining).
@Emer McDonnell: but Michael is not the best either
Whatever about more women, there are men there who should not be next or near a minister’s job.
@Shaun Gallagher: Thick heads unable to find any intelligent criticism of the great choice of ministers resort to sexist analysis of gender of politicians.
If it was on merit, there would only be one woman in Cabinet, fact, McEntee and Foley would not make the cut
Thankfully, all this woke nonsense is dying out, I welcome the demise of woke
The silence of the Journal.ie on that piece of trash killer in Southport speaks volumes. He got very well deserved 52 years.
@Gerard Carey: How does it speak volumes?
@Gerard Carey: and also no mention that in Iraq they just passed a law allowing a man to marry a 9 year old! Horrific & barbaric!
@Brendan O’Brien: hello, Jihadi apologist
@Gerard Carey: I see the No1 race-baiter Brenny is on the prowl!
@Emer McDonnell: It’s because their “prophet” did it. He was a paedophile, you know.
@Gerard Carey: Well theyndo what it says on their tin. No surprises there.
@Chop Chop: and how old do you think Mary was ?
People in glass houses
@Shane Kinsella (Kinsey): Was Mary sexually abused when she was 6 years old? Do people worship Joseph and follow his example? Did Jesus rape and murder? I could go on and on because your attempted comparison is so unbelievably absurd. Not to mention the fact that I’m not a Christian, so I’m not in any glass house.
@Brendan O’Brien: I shouldn’t need to tell you that. I’m sure you could figure it out by yourself.
@Gerard Carey: You got it wrong anyway.
@Chop Chop: We don’t know if Mary was sexually abused.
We do know that this God character mandates rape, murder, genocide, slavery, and many other vile and evil things.
@Shane Kinsella (Kinsey): tell me Shane are Christians today allowed marry 9 year olds?
@ItWasLikeThatWhenIGotHere: Yep, sure at the end of Sunday mass, the local priest tells us to go forth, rape and pilliage… I think you’ll find that the message of Jesus, the “Christ” in “Christianity,” is one of love, peace, and forgiveness. The message is Muhammad is one of conquest, murder of unbelievers and apostates and taking sex slaves. If you think Islam and Christianity are equal, you don’t know anything about Islam. Also again, I’m not a Christian, so not sure why you’re telling me this?? Why not compare it Buddhism or something?
@ItWasLikeThatWhenIGotHere: it’s actually quite amazing that rather than speak out in disgust about the new law in Iraq….they now somehow are trying to blame or accuse Christians…..you actually couldn’t make it up!
@Brendan O’Brien: They put it up 5 hour’s after every other Site.
@Gerard Carey: The original article is from 8.12am. Your agenda is showing.
@ItWasLikeThatWhenIGotHere: that’s a fairly dumb comment, even for you
The fact of the matter is that there are more women in this country than men. If they really wanted female representation, they would run for office or vote for their fellow females instead of whining about it. It doesn’t matter if there’s no women in the cabinet, I couldn’t give a damn and all four of my children are girls. My wife couldn’t give a damn about it either, she also just wants the best person for the job. The funniest thing about this is that all three of the women in the cabinet have got to be the top three most incompetent individuals in Fine Gael and Fianna Fáil. More of that? No thank you. We need to end those bloody political correct quotas for a start if we want better people. Maybe then all the women in cabinet won’t feel like DEI hires.
@William Jennings: well said! Agree 100%
Well done Harry, you made it to the bottom.
What about all of the other Genders??
@Liam Byrne: Ssshhhhh… you don’t bring that up when discussing female reps or the pay gap. It interferes with their double-think. Please try to be more careful.
Ask Lowry about the proposed racecourse in Tipperary. It is a priority for him. His benefactors expect him to deliver this project at taxpayers expense. Just like the Curragh debacle which cost taxpayers over €40m. It is a total failure. Be watchful of this issue— and examine who is pulling the strings. Mike
@Harry Paisley: You must have 6 devices going at the same time Dave. In the words of Bob Geldof. There’s a world outside your window..
Merit over gender for me really, I no the bar is low for them but still, merit over gender please.
The best person should be appointed as Minister based on their ability, not their gender.
When I am King, all of these people will be put against the wall.
@Chop Chop: when I am king, you will be first against the wall, with your opinion, which is of no consequence at all
@Chop Chop: A cowboy beebop king?
@Kevin Kerr: Randomly popped into my head yesterday, so stuck it on full blast. Hadn’t heard it in years. What a song (and album).
@Brian D’Arcy: Darn tootin’
@Chop Chop: music and the arts, the great unifier. I saw them headlining Glastonbury in 1997, shortly after the release of OK Computer – epic
@Kevin Kerr: Lucky git. I was only 10 then… I got to see Sum41 live, at their peak… Just not the same though, is it? :-)
F$%k sake Mary Lou. Plenty of gains made this last few days. She won’t be long squandering them.
Martin definitely preparing for the exit door. He was asleep when Lowry pulled a fast one and he’s taken his eye off the ball on the gender balance. Losing his political touch nearing the end of his political career.
@Gerry Ryan: Nearing the end of his career???. He’ll be in government until 2030.
We had the Rat Pack top class entertainers now we have the Cat Pack leaders of Sin Fein Labour and The DPS oops not so top class but will probably be moaning for the next 5 years.
HA HA HA
@Pam Dempsey: I realise have no interest in facts but that is the job of the opposition, educate yourself, son.
@Brian D’Arcy: are you the priest you prcik
@Brian D’Arcy: it’s the job of the opposition to come up with solutions as I know we’ll not just moan. You obviously don’t know that father.
@Brian D’Arcy: yes father are you still
@Pam Dempsey: you are obviously a perov
Utter scutter DEI does not work the evidence is there.
The Árd Comhairle ( aka the Army Council ) thought they were smart when they anointed Ms McDonald, a female, as SF leader. Dividends were short lived.
@Vincent Alexander: Yeah she’s a brilliant heckler but not so good at acting with decorum
The last female senior ministers didn’t exactly cover themselves in glory did they
Can anyone name any female TD’s that should have gotten a position in cabinet
What women have been overlooked who should have been in cabinet? We need people in these positions based on merit. Nothing else. If they happen to be women great. Once they are the best person for the job.
Some reports that “Slay Queen” was heard in the Dáil on several occasions today
Well Helen and Norma did such a good job I’m surprised he didn’t appoint all women
Wel when you look at the women who got ministerial positions…
It’s 20% of cabinet positions and only 23% of TDs are women even though there has been a big increase the number of women running. It’s about proportionally correct for TDs but not for women in the country
If your names not down your not coming in Lol
People do not look into the realities of this issue because it’s not a kind reflection on how women treat female candidates.
In the US presidential election the narrative was that Harris didn’t win because of ‘misogyny’.
To support this theory you must ignore the fact that there are more females in the population than males (slightly more women are born than men & women live longer), women are more likely to be registered to vote than men & of the registered voters women are more likely to vote than men.
These factors combined mean that for decades there are much more women voters than men in every presidential election.
There are almost 10m more women voters (consistently circa 9.7m since the 1980s) yet somehow it’s mens fault that Hilary Clinton & Kamala Harris didn’t win.
It’s the same here in Ireland.
There are much more women voters than men & if women voted for women there would be more women TDs than male TDs.
I know a former female TD that wasn’t re-elected some election previously & she confirmed to me what all female candidates know but they cannot admit because it would destroy their election campaigns.
Generally speaking women won’t vote for women candidates for personal reasons.
When you see the carry on with Mary shout a lot and Ivana being brought to a new level maybe calm heads are better than what sex they are.
When you start with quotas, where do you stop.
22% of the population are disabled!
So should 22% of the cabinet be people with disabilities?
I have never voted for a politician because of their gender and never will.
I will not vote for a politician if they are pushed on me to fit a gender balance.
The rest are making the sandwiches.
have your say