Looking up: 46% expect wage hike in next year

DESPITE the economic downturn, 46% of Irish people expect to see their income rise over the next 12 months, a survey by Halifax has shown.

The research, completed by Amárach Consulting, shows the optimism is highest among men, 25- to 34-year-olds and people living in Dublin.

Up to 55% of those in the high-earning, ABC1, bracket expect a salary hike in the next year as do nearly 60% of 25- to 34-year-olds.

Despite constant warnings that we have borrowed too much, there appears to be little worry about debt burden with just 24% of those questioned saying they worry about the amount of debt they have built up.

The survey shows that there is more concern about the economy among the middle-aged. Up to 40% of 45 to 54-year-olds say they feel less confident about their financial situation this year than they did last year.

Overall, across all age groups, one in three people are more concerned about their finances in 2008 than they were in 2007.

A total of 34% are finding it hard to manage on a day-to-day basis. That is up from 30% last year.

A third of people worry their incomes won’t match their household bills in the next two years. This concern is greatest among women, with 42% of them admitting financial concerns while 52% of 45- to 54-year-olds say they are concerned. However, just 7% of those questioned were seriously worried about their bills with 32% strongly disagreeing that they will face problems paying bills.

Not surprisingly with the food and energy bills soaring, the cost of living is an issue in this country.

Nearly two-thirds of those questioned agreed with the statement that “the cost of items I buy annoys me”. This was most pronounced among the over 65s and least pronounced in the 15-to-24 age bracket.

Nearly six in 10 Irish people say they are “careful” when spending as they “can’t always afford to buy what they want”. A noteworthy 60% of those questioned follow a careful financial budget — with this figure highest among the over-40s.

This prudence is most evident in the low income bracket, the C2DE group with 69% admitting to careful spending. However, 56% of the high earning, ABC salary bracket also admitted to watching how they spend.

The research shows that women, over-65s and the lower socioeconomic groups were most likely to “budget for every penny when shopping”.

Overall, the survey showed that Irish women aren’t all feckless shopaholics. According to Halifax, Irish women are more likely to budget, save and to worry about financial security in the future. Some 41% of women worry about their income levels.