More than half of Irish consumers (53%) feel that Government policy is not encouraging them to save.
New research from savings provider Nationwide UK (Ireland) also revealed that over one third (35%) think it is a tough time to put cash aside in light of the current economic situation and growing Brexit concerns.
Many consumers still appreciate the importance of saving, with 44% saving regularly and almost one quarter (24%) saving on a semi-regular basis.
The research also sheds light on what consumers are currently saving for, with results showing that over one third (34%) are saving cash for unexpected expenses in the future.
Some 14% of consumers are saving specifically to fund education or training expenses, the same number are planning to unwind on a holiday with their saved cash.
Some 12% are putting money aside in order to buy a new home or renovate an existing one.
According to the data, almost one in three (32%) consumers are putting more than €200 into savings every month and one quarter are saving between €101 and €200.
The same amount of consumers (25%) are putting aside between €51 and €100 each month and just over one in ten (13%) are only managing to save between €26 and €50 each month.
The research also revealed the decisions consumers are making when it comes to their surplus income.
The majority (43%) used extra euros to pay off debts including mortgage repayments in October, just over one in ten (11%) chose to spend surplus income on unplanned purchases and 10% decided to invest it.
On the other hand, a large number of consumers (36%) refrained from spending any additional earnings last month, choosing to feed their piggy banks instead.
Commenting on the findings, Brendan Synnott, Managing Director of Nationwide UK (Ireland), said: “The report points toward consumers and savers being disappointed in the budget. Whilst there were some positive measures, they were modest.
“The gradual reduction in the DIRT rate over the next four years is a missed opportunity for the Government to give savers a meaningful incentive.”
The Nationwide UK (Ireland) Savings Index is produced monthly from a minimum sample of 800 consumers aged 15 years and above.