Average level of household savings falls marginally to 13.8%

The Euro area saving rate for 2023 and 2024 is around 14.7%, up from 12.7% in 2018-2019. 

Irish households saved almost 14% of their disposable income in the final three months of 2024, new figures released by the Central Statistics Office (CSO) reveal.

Latest data shows a marginal fall in savings compared to the previous three month period, dropping from almost 15% between July and September 2024. 

Overall, the Irish household savings rate averaged 13.8% since the start of 2023.

While Irish households returned to the same levels of saving before the pandemic, households in many other European countries are now saving a higher proportion of their income than before the pandemic, the CSO added.

"Households saved 13.8% of their income in the last quarter of 2024 which is in keeping with the 2023 and 2024 average," said CSO statistician, Peter Culhane.

"This is added to their wealth in the form of buying new homes, growing bank deposits, pension saving, and paying off debt."

The Euro area saving rate for 2023 and 2024 is around 14.7%, up from 12.7% in 2018-2019. 

"As a comparison, Germany, which is the largest economy in Europe with the greatest number of household savers, had a saving rate of 19.6% in 2024, up from 18.0% in 2018-2019," Mr Culhane added.

After adjustments for seasonal patterns, Irish household consumption and incomes both rose in the final three months of 2024, with the faster rise in consumption leading to a lower saving rate during that time.