Financial confidence on increase, according to survey

Standard Life’s financial confidence index, released today has shown an increase from 62 to 66.

The survey includes the opinions of more than 1,000 adults who were asked how financially secure they felt, and compared to a similar survey taken three months ago.

“Nine months ago homeowners were wondering how much interest rates would increase by and whether they could cope,” said Michael Leahy, chief executive of Standard Life. “They have lived and coped with higher rates for some time. In addition, people obviously have a strong sense of job security as this would typically be a major contributor to financial confidence.”

Interestingly, those aged 65+ again gave the highest score compared with younger respondents. They scored 73 out of 100, up from 65 out of 100 three months ago.

“Retired people tend to be mortgage-free and hold more money on deposit proportionately,” said Leahy. “The flip side of higher interest rates for this age group is higher returns on their savings.”

The next most financially secure group is the 45 to 54-year-old category with a score of 69 up from 65 in the last quarter.

The only age group to have experienced a drop in confidence is the 35 to 44 year old category which fell from 64 to 62 quarter on quarter. This group has replaced young adults aged between 18 and 24 as the least financially secure group from the last survey who scored a marginally higher 63 out of 100.

Men also continue to be slightly more confident than females with a score of 67 (up from 63) versus 65 (up from 61). Both scores are higher compared with three months ago.

On a geographical basis, Connaught/Ulster respondents have replaced Dublin-based individuals as those feeling most financially secure. The Connaught/Ulster region scored 68 (up from 62) compared with a Dublin score of 66 (up from 64). Munster scored 65 (up from 62) with the Rest of Leinster scoring 66 (up from 61).