Irish households are wealthier than ever, worth €1.3bn, report finds
The total net wealth of Irish households increased by €39.5bn between the first and second quarter of 2025 to reach a new high of €1,288.1bn.
The Central Bank’s just-published wealth report found that the total net wealth of Irish households increased by €39.5bn between the first and second quarter of 2025 to reach a new high of €1,288.1bn.
The figures involved are staggering here. In its bulletin, the bank says that this new high was driven by a rise in the total number of financial assets we hold by €37.6bn – and that’s just over a three-month period. You’re talking currency and deposits, as well as pension entitlements and insurance.
Over the same twelve-week period, the total value of housing assets owned by Irish households increased by €19bn due to ‘positive revaluations’. Property price rises, in other words.
Meanwhile, total liabilities – which mainly consists of long-term loans – totalled €156.1bn. This is an increase of €17.1bn from the end of the previous quarter.
The figures also tell a tale of income inequality. The wealthiest 10% of Irish households owns €674.9bn, or almost half (49.3%) of the total household net wealth in the country.
Helen Carbery, CEO of the Credit Union Development Association (CUDA) says that while there are many factors contributing to wealth inequality in Ireland, if we could improve the financial wellbeing of all citizens in Ireland, significant strides would be made in tackling this gap.
“Low levels of financial wellbeing have been closely linked with financial and social exclusion, resulting in many societal issues, including increasing levels of wealth inequality. Financial wellbeing has four pillars: financial literacy, financial education, financial inclusion and consumer protection. Any initiatives to improve the financial wellbeing of our citizens would need to focus on all of these four pillars – improving one pillar without the others will simply not lead to better financial wellbeing in this country.”
The government recently launched a five-year national strategy aimed at improving financial literacy. Ms Carbery points out that financial literacy is an important life skill that everyone should have, as it ultimately improves people’s overall financial resilience and wellbeing, and empowers them to become financially capable.
“This in turn means they can make the best use of available financial products, cope with financial pressure, know where to turn in a crisis, budget well … and use savings and insurance to plan for the future – all of which feeds into their overall household wealth.”
Sarah McGurrin of NFP Ireland says that any increase in household wealth is a positive signal, but agrees that it does not tell the full story. Many households, she points out, will see little direct benefit from this rise, particularly those who do not own property or are still saving to get onto the property ladder.
“While the headline figures are encouraging,” says Ms McGurrin, “Irish households should not assume that wealth growth is guaranteed to continue. Economic challenges remain, including slowing growth forecasts for 2026 and ongoing uncertainty in global markets. Even small increases in unemployment or living costs could quickly reduce disposable income for some families.”
Rising property values may add to household wealth, but unless a better loan-to-value ratio allows you to move to a better mortgage rate, that wealth increase won’t have much of an impact on getting by day to day and week to week. As Ms McGurrin points out, rising costs mean that cash flow management and budgeting remain essential. She too cites the need for greater financial literacy.
“Recent research we conducted reflects how household budgeting is still an issue for many. People all over Ireland struggle to understand key financial concepts, particularly around retirement planning. With auto-enrolment set to roll out in 2026, it is vital that individuals are aware of how contributions work, how tax relief is applied and the long-term impact of their savings.”
She believes that without a clear understanding of personal finance basics, people may not make the most of opportunities to grow and protect their wealth, or may make decisions that unintentionally leave them exposed to future risks. Financial knowledge is critical to ensure that households can translate wealth into real security, plan for retirement and manage day-to-day expenses effectively.
“In the main, while wealth accumulation is encouraging, households should maintain focus on prudent financial management. Budgeting, planning for contingencies and reviewing major financial decisions remain essential. Gains in household wealth should not be taken as a signal that risks or economic pressures have disappeared, and careful planning is still needed to protect household finances.”
Teresa Bruen, financial planning consultant at Gallagher, agrees that many people will look at these record wealth numbers and conclude that the figures definitely do not apply to them. She points out that families throughout the country are struggling with increasing prices in groceries and utilities. Inflation is well above average for key grocery staples such as meat (up 11.2%), fresh whole milk (up 10%) and butter (up 11.6%) as well as the luxury items like chocolate (up 8.9%).
“While the rising house prices are the driver of this wealth growth – they are also the reason that so many people can’t find suitable homes to buy and are stuck in an expensive rent trap.”
Ms. Bruen agrees that this record level of household wealth is a positive sign for Ireland’s economy, but it’s also a reminder for individuals to manage their finances wisely and plan for the future.
“For those whose financial situation has improved this year, I would advise that they start the New Year by taking some proactive steps to protect the wealth they have amassed.
How? Firstly by reviewing your financial plan : If your home has increased in value, consider how this fits into your long-term financial goals. Could it provide opportunities for retirement planning or funding education?
Diversify your investments if you can. Don’t rely solely on property. Consider spreading your wealth across different types of investments, such as pensions, savings or stocks to reduce risk. Alternatively, it may make sense to pay down debt . With interest rates poised to turn higher, now might be a good time to focus on reducing any outstanding loans or mortgages.
Finally, plan for the future . Rising wealth is an opportunity to think about your financial wellbeing. Speak to a financial adviser to ensure you’re making the most of your assets and that you are prepared for any unexpected changes in your life.
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