Around one in five interested in using personal investment account, survey finds

The director of the FSI, Patricia Callan, said Ireland has 'developed a reputation as a nation of savers, and this is backed by the findings in this report'.

Despite finance minister Simon Harris extensively promoting a personal investment account which he intends to bring forward, just over one in five Irish adults expressed an interest in using any such investment vehicle, according to research from Financial Services Ireland (FSI).

Ahead of launching a personal investment account, the Government has been examining models used in other countries for retail investing, with Sweden’s ISK, Britain’s ISA, and Canada’s TFSA regularly cited.

However, according to a survey by Amarach Research on behalf of the FSI, only 23% people expressed an interest in using a retail investment account, with 50% of people saying they are aware of government plans to introduce such an incentivised savings/investment scheme.

The director of the FSI, Patricia Callan, said Ireland has 'developed a reputation as a nation of savers, and this is backed by the findings in this report'.

“That is a positive, but it is important that we also cultivate a new investment culture where people can build wealth through investing in capital markets.” 

Important features for prospective users

When those surveyed were asked what would be the most important features for the prospective account, 40% cited higher returns over a deposit account, 21% cited product simplicity, and 14% said tax incentives.

The survey also found that only 16% of people surveyed hold stocks, while 5% had other financial investments. Of those people aged under 35 who have investment or use financial products, 21% hold cryptocurrencies, while those over 50 are more likely to hold a life insurance product, cited by 35%.

The survey also shows that 70% of people hold a formal savings account, while around half of adults save on an informal basis which can include money kept at home, money saved as part of a group, or when money is moved between accounts for short-term savings.

Of the adults surveyed, 30% said they have money to invest but don’t know what to do with it. This position is most apparent amongst the 25-44 age group, 38%, and those earning above €65,000 per year, 40%.

The survey was conducted in March, and it involved interviewing 1,000 adults.