80% of SSIA holders continue saving after accounts mature
Some 77% of those whose SSIAs have already matured are continuing with the habit, the research shows. Of those that are continuing to save, 22% are saving more now than their previous SSIA contribution.
Over 45% are saving the same amount as their previous SSIA contribution and 29% are now saving less than their SSIA amount each month.
The research, surveying 200 people, was conducted in December.
It revealed 24%, of those whose funds matured, had not done anything with their funds yet, 17% have saved all or most of it. A quarter of those surveyed have reinvested it all.
However, EBS head of savings and investments, Kevin Johnson expects the predicted consumer spending boom to occur when 55% of accounts mature.
“The majority of accounts will mature in May, so the uplift in consumer spending should take place after that.
“However, people are also planning to save and invest their money as saving is embedded into people’s minds after the success of SSIA initiative,” he said.
Many SSIA savers have not stuck to their original plan of what to do with their matured funds.
The research revealed of those people with a plan for their SSIA money, 9% said they would use it for a house deposit. Just 2% actually did. While 14% said they would put it into a pension, 7% actually did.
“Our advice for SSIA holders is not to rush into making a decision. Over the next month all SSIA holders that will be maturing in the final month will be receiving their SSIA form.
“SSIA4 holders seem to be taking a sensible approach with their maturing funds, with only 15% saying that they have spent all or most of their SSIA savings,” said Mr Johnson.
“Talk to your financial advisor and discuss the best options for you. Research your options thoroughly and don’t feel that you have to make a hurried decision.”
Mr Johnson also warned SSIA holders not to forget about SSIA4 declaration form in time to receive the Government bonus.
All SSIA holders will have received their declaration form by the end of January. The SSIA4 form declares that an SSIA holder has met the Revenue’s conditions for the SSIA scheme.
If the SSIA4 form arrives after the maturity date, SSIA holders have to pay a 23% maturity tax on the total value of the SSIA savings.
Mr Johnson cited change of address as the main reason for non-return of SSIA4 forms.
He advised diversifying investments across a range of areas including term cash deposits, stocks and shares and property. “This ensures that you are exposed to a number of investment areas and can benefit when one in particular performs well.”
