21/02/2007
Irish Financial Attitudes
New figures released today by leading international consumer think-tank, The Future Foundation, an Experian company, reveal that one in two Irish people regard ‘living well’ as more important than paying off debt (one in four), saving for retirement (one in five) or leaving an inheritance (one in ten).
- Irish rate ‘living well’ higher than clearing debt or saving for retirement
- New European statistics show Irish to be among the best savers in Europe
- ‘Shrewd’ Irish the largest consumers of personal finance information
According to the Future Foundation’s pan-European statistics, owning luxury items remains a priority for Irish people, with 38% citing ‘having the things their family want’ as the most important reason to borrow money. However, for 75% of Irish consumers, paying utility bills remains their top financial priority.
The research identified varying levels of consumer financial sophistication among consumers across Europe, defined by the number of financial products held and the use of new financial channels such as internet banking. Irish people were found to own an average of four different financial service products, just behind the savvy Swedes (seven) and ahead of the Russians who prop up the table with an average of just one financial product per person.
Key research findings showed that the Irish were:
- Some of the best savers in Europe, saving on average 11 per cent of their disposable income. Of those who save regularly one in three save for a rainy day, one in four do so for holidays or to go travelling, while one in 10 are saving for a once-off event, such as a wedding or to buy a house.
- While the most popular reasons for borrowing in Europe are for household improvements, followed by buying a car, Irish people borrow ‘to buy the things they want’ (38%) with home improvements trailing at 8%, behind buying a car (13%).
- The Irish are the third most likely to research financial services, with 37% researching products before buying, just behind the British (38%) and the Norwegians (44%). The Czechs (15%) and Russians (16%) were the least likely to read about such services.
- Irish consumers also believe strongly in planning for more than one source of income for retirement (94%) whereas the European average is much lower (69%).
The Irish, along with the Nordic countries, were found to make the financial services system work harder for them, with Irish people the most likely to have a savings product while also being in debt.
Seemingly unaffected by high profile financial services scandals, the Irish, along with the Danes, where found to have the highest level of trust in financial institutions in Europe.
Meabh Quoirin, Director of The Future Foundation, said “Our research shows that paying off debt is not a huge priority for Irish consumers. However, Irish people are more likely to be found reading up on personal finances and as a result the Irish are some of the shrewdest consumers of financial services products. Over recent years our work with the financial services industry has predicted some of the emerging challenges to the sector, the drive for convenience and increasing volatility, the care with which people choose their sources of advice. This research shows just how important it is to also understand country differences ”.
For further press information please contact:
Stephen McNamara
MRPA KINMAN
01 – 703 8603
087 – 917 6941
Laurie Mannix
MRPA KINMAN
01 – 703 8620