Cost of living hinders saving

EIGHT out of 10 working people save about €299 a month but most still borrow rather than save for a large purchase, a study shows.

The rising cost of living is beginning to bite, however, with nine out of 10 saying it has impacted on their ability to save. One in every five regular savers have cut back on socialising to increase the amount that they save each month and working adults are spending more on savings than on clothes, socialising or holidays.

The survey conducted by Millward Brown IMS for the EBS Building Society found that a third are saving for a rainy day and one in five are saving for their children’s education. More than a quarter are saving for nothing in particular.