People continue to save but many dip into their nest eggs

MORE than four out of five people are now saving but an increasing number of people are dipping into the money they have stashed away.

EBS, in its quarterly consumer savings sentiment, found that 84% of Irish people are saving money but they are saving less than they used to.

The research found that two in five people said that they had dipped into their savings in the past month.

More than half of those surveyed said they are likely to spend the same amount on Christmas gifts this year as they did last year and the average amount that people spend on family and friends is about €637. Those aged 35 to 49 spend €770, however, and those under 24 spend €370.

One in three people said they save regularly and have increased the amount that they are depositing by 14% to €4,646. However, there are fewer people saving regularly and the vast majority that are saving, save when they can, and this amounts to €2,833, almost half of what regular savers are managing to put away.

People said that the reason that they are dipping into their savings is to fund day-to-day expenditure.

The survey also found that men are saving more at €4,500, than their female counterparts who save just more than €3,000 a year.

Head of marketing at EBS, Aidan Power said: “Our research shows that people are far more inclined to save for a purchase, rather than put it on their credit card and on the whole people believe that they are much better at managing their money.

“Furthermore, people intend to save more in the year ahead than they did last year.

“We are seeing savings, access to savings and the importance of savings in maintaining peoples’ lifestyles continuing to impact hugely on peoples’ lives,” he said.

“With Christmas just around the corner it is clear that while people are managing their money well and in general are continuing to save, money will be spent at particular times of year or on specific occasions — such as Christmas.”