25% of savers feel they will put less away in crisis

A QUARTER of surveyed savers feel they will be forced to put away less in the future as the financial crisis shows no sign of abating.

The percentage of people saving regularly remained steady at 38% last month, according to the Nationwide UK (Ireland)/ESRI savings index.

Even though a majority of consumers think they are saving less than they should, 63% said they should be saving the same amount in six months time.

Just 11% expect to be saving more in the future than at present, while 26% think they will be saving less.

The index increased by 14 points in July as consumer concerns about the economic environment continued.

Almost half of consumers said they would use any extra cash to pay off debts, including their mortgage.

A further 36% said they would save any surplus, while 11% would spend any spare cash.

Most people said they were saving with a precautionary motive, with 42% of responses indicating saving for unexpected expenses.

Of those consumers who are able to save occasionally or regularly the largest proportion, a third said they saved between €51 and €100 euro a month.

Managing director of Nationwide UK (Ireland), Brendan Synnott said: “The key trend that has been driving the index in 2011 is reflected again this month with concerns about the economic environment and government policy towards savings. This concern is not age specific, as it is being expressed by those over and under fifty years of age. Irish consumers are anticipating more uncertainty to come in the future.

“While Ireland is no longer at the centre of the continuing economic crisis, the bigger European and global dimensions that are now the focus of attention suggest that we are moving even further away from the restoration of consumer confidence and therefore willingness to spend.”