Pensioners have €16bn on deposit

IRISH pensioners have €16 billion in cash on deposit with banks, the post office and credit unions.

A new survey from financial services company, Standard Life shows the average Irish saver – across all age groups – has around €30,000 on deposit; with more than 80% saying they have at least some money lodged with some form of mainstream financial institution.

The survey also showed that the biggest savers – in terms of value – are, perhaps unsurprisingly, those aged over 65, who have built up average savings of €81,820.

According to the study, 13% of over 65s have more than €250,000 sitting on deposit in their accounts. If those figures are put up against the last census – which shows nearly 500,000 people living in the country are aged over 65 – then the total level of deposit for this age group stands at approximately €16.25bn.

“It’s not too surprising that this age group has the most money put aside,” said Brendan Barr, head of marketing, Standard Life.

“Many of them are probably retired and have benefited from chunky tax free lump sums from their pension pots – plus additional money saved over the years.” However, he added the proportion with savings of over €250,000 was relatively striking.

“Over 65s have had a lifelong savings culture – and they’re probably the best advert as to why long-term saving makes sense.”

A recent Central Bank survey showed that in total – when corporate depositors are added and money held with foreign branches of Irish banks are included – around €208bn is on deposit in Irish banks.

The Standard Life survey also showed current trends see men, on average, saving more than twice as much as women and those living in Dublin having more savings than those living outside of Leinster.