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Dublin: 15°C Saturday 20 August 2022

Under 50s stop saving as they struggle to pay off mortgages

It is thought that the deadline for property tax registration may have triggered this.

Image: Saving mortgage image via Shutterstock

THERE HAS BEEN a significant drop in the number of people under 50 saving regularly, according to a survey by Nationawide and the ESRI.

The savings index fell two points in May with the proportion of people saving regularly falling from 31 per cent to 28 per cent the previous month.

This decline is most apparent in those in the under 50 age bracket with just 28 per cent in this group saving regularly in May compared to 36 per cent the previous month and 41 per cent a year ago.

Attitudes towards the savings environment also remained negative in May with just 27 per cent of people believing that now is a good time to save, compared to 32 per cent last year.

Just 6 per cent of people feel that government policy encourages saving. When asked about how they would use any spare funds available, 52 per cent of people would pay off debts including their mortgage; 33 per cent would save the money; 10 per cent said they would spend it; and 5 per cent said they would invest it. These preferences have remained consistent since the start of the year.

Brendan Synnott, Managing Director of Nationwide UK (Ireland) said this data contrasts with more positive attitudes expressed by savers this time last year. However he said it s possible that it is a temporary setback triggered by the deadline for the registration for the new property tax at the end of May.

Read: Fall in personal loans and holiday home mortgages as households pay off debt>

Read: Irish households borrowed nearly €1bn less in January>
Read: Loan refusals for businesses at the lowest in four years>

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