Savers dipping into reserves

PERSONAL savings are falling dramatically as people dip into reserves to make ends meet, according to the latest research.

People are saving about €1,000 per annum less than they were this time last year new findings by the EBS Building Society shows.

The research was carried out to coincide with the launch of National Savings Week and shows the average saved per annum is €3,661, against €4,612 last year.

The sharp fall is accounted for by the core regular saver group which shows a 20% decline since May and a fall overall of 31% since January. The report also confirmed 20% of adults still do not save.

Other findings from the National Savings Week showed:

n45% of savers say they have had to start using their savings to compensate for loss of income.

n46% of savers said they were saving more now because of a lack of certainty about the future.

National Savings Week is a public awareness initiative, supported by EBS Building Society, that runs from September 7-12.

The campaign, in its second year, attempts to raise public awareness about the importance of savings for the future and is designed to inform and educate people about the range of savings products and options currently on the market.

Periodic savers are dipping more into their savings. In January, a third of periodic savers say they tend to dip in every two to three months; this rose to 43% in May and now stands at 47%.

Of greater significance is the fact that considerably more savers who believe they typically ‘dip in’ on a monthly basis have actually done so in the past month.

In effect this means the reality of what they are doing far outstrips their assumed typical behaviour, the research found.

Director of membership business at the EBS, Dara Deering, said: “The research shows people are concerned about saving and finding safe and suitable savings products. They are also finding it more challenging to save as the economy continues to contract,” she said.