Only 38% of people save on a regular basis

A LITTLE more than one-in-three people under the age of 50 are saving regularly.

The latest Nationwide UK (Ireland) savings index declined last month and the factor driving the weakening were the reduction in the percentage of people saving regularly from 40% to 38%. The percentage of those not saving at all rose from 25% to 27%.

The national average for those who save regularly is 38% while 41% of the over-50 age group save on a regular basis. Two-thirds of the under-50 group believe they are saving less than they should, while a little more than half of the over 50s believe the same. Of those aged more than 50, two-thirds think government policy discourages saving.

Managing director of Nationwide (UK) Ireland, Brendan Synnott, said: “There is a clear pattern of behaviour emerging which shows that people still want to pay off debt or save in preference over spending.

“However, less and less people are happy with the levels they are currently able to save or think they may be able to save in the future. It is also apparent that the over and under 50s are facing different pressures which are affecting their attitude towards saving. The under-50s group must contend with the expense a younger family brings and larger mortgage debt and as a consequence regular saving, although desirable, is less achievable.”

Overall, 31% of consumers think now is a good time to save, an increase from 28% in January.

The index is constructed from monthly research on the attitudes of Irish consumers towards savings.