Only 7% to splurge their SSIA windfall

HOLDERS of Special Savings Incentive Accounts (SSIAs) have lost their appetite for blowing their windfalls on a spending spree, according to new research from Bank of Ireland.

The bank yesterday said only 7% of savers now planned to spend all of their SSIA money when the scheme begins to mature in May next year.

This was down from 17% a year ago.

But 47% of people have yet to decide what to do with their lump sums, which could be worth more than €20,000, and felt they needed financial advice to help them use the money wisely.

Bank of Ireland head of savings Ronan Headon said: “This research lends support to our view that there will be a huge amount of people requiring financial advice as SSIAs mature between May, 2006 and April, 2007.

“We would strongly encourage people to seek advice before making a decision and ensure they look at the wide variety of options available rather than making a decision to spend it all.”

The bank’s research, which was carried out in conjunction with Lansdowne Market Research, found 21% of people questioned would opt to spend part of their lump sum and invest the remainder.

One-third of respondents said they would use their money to buy a new car, while 27% said they would contribute towards their next holiday.

Home improvements were also earmarked as a home for the money by 26% of people, while 10% said they would use the money for a deposit to buy a home.

Two-thirds of SSIA holders said they would continue saving when the scheme ends.

And 45% said they would welcome a fresh Government-sponsored initiative to transfer some of their money into a pension plan.

“While many people have very different ideas of how they will use their SSIA savings, a significant number haven’t made a decision,” said Mr Headon.

“Regardless of what people are intending to do with the money, we would strongly encourage SSIA holders to continue saving regularly when the scheme ends, which many have said they will do,” he said.