‘Record levels’ of consumers saving

Record levels of consumers are choosing to save their money instead of spending it, according to the latest Nationwide ERSI savings index.

The savings index found that 41% of people with surplus cash would choose to save it, an increase of 5% in the last year, and the highest preference for saving ever recorded.

There was a decline in the percentage of people who said that they would use any surplus money to pay off debts following from 51% last year to 44% in August of this year.

Managing Director of Nationwide UK in Ireland Brendan Synnott said that the shift away from paying down debts to saving is a sign that consumers have got their finances under control.

“These tentative signs of improvement are also accompanied by a shift in preference for how spare cash is used. Paying down debt remains the most popular action for spare cash. However, the gap between this and saving has narrowed significantly over the past 12 months.

“This may indicate that consumers are getting their immediate debt obligations under control and are re-focusing on saving for now.”

The survey indicated nearly a quarter of all consumers were saving more than €200 a month. The survey found that most people (28%), were saving up to €50 a month, 25% saving between €50 and €100 and 24% between €100 and €200.

Despite the increase in people saving only a tiny proportion of savers say they are happy they have put enough money aside. Only 15% of people now say they are content with the amount they are saving, a marginal increase from 13% a year ago.