Many SSIA holders will continue to save - survey

The SSIA boom has kick-started a savings habit which will continue after the SSIAs mature, according to a new survey.

The research, which was conducted by Behaviour and Attitudes for Irish Life, explored the attitudes and plans of the 1.1 million SSIA investors.

Amongst its findings were that 67% of SSIA investors indicated that they expect to continue saving after their product matures. Of this 67%, two thirds indicated that they will save the same or more as they saved in their SSIA.

The survey also found more than half the investors still have no definite plans on what they will do with their savings. While almost a quarter are considering investing some of their SSIA in pensions and other long-time savings products.

Of those who have made plans for their windfall, holidays, home improvements, cars and property feature most prominently.

The survey shows that older people and working-class savers are more likely to spend their SSIA’s while more “economically confident” people are more likely to keep their savings intact. The first SSIA’s will mature this month with the balance maturing over the next year.

The survey of 1,200 adults is the first in a planned series of bi-monthly surveys aimed at determining the plans and intentions of SSIA holders. The survey is structured to reflect Ireland’s adult population in terms of sex, age, social class, region and area of residence.

According to the survey, one in every three SSIA holder will use some of their savings on home improvements and some 20% of the total value of SSIA’s or €2.3bn, is likely to be spent on the home.

The survey shows that 27% of account-holders will spend on a holiday and this will account for just over €1bn of the total saved in SSIA’s while a further 16% of account-holders will spend €820m on cars.