Reflecting Ireland Research highlights strong appetite among consumers to save but only half of those eligible say they avail of entitlements

• Research reveals strong ongoing preference for saving despite bounceback in overall consumer sentiment to two-year high
• Major shift in people considering switching utility, insurance and broadband providers to save money
• Safety is the most important factor when choosing a savings account, followed by accessibility, and then interest rate.
• Just half of those eligible say they avail of PRSI and tax relief entitlements, with 1 in 3 homeowners unaware of available supports to help with the cost of energy upgrades

PTSB’s latest Reflecting Ireland report indicates a strong appetite among consumers to save ahead of spending despite ongoing concerns about the cost of living.

The research also shows that just half of those eligible say they avail of PRSI and tax relief entitlements with 1 in 3 homeowners unaware of the supports available to help with the cost of energy upgrades.

Consumer confidence levels have bounced back to their highest level since January 2022, a period when significant Covid restrictions were being phased out and immediately before the Russian invasion of Ukraine.

Main findings:

Savings

• 75% of Irish people save on a regular basis, rising to 84% among the 25-34 age group
• Of those who currently save, 64% are planning to save the same amount over the coming year; 23% intend to save more and 12% say they will save less
• When choosing a savings account, ensuring their money is secure is the most important factor, followed by easy access and attractive interest rates.
• If given a €1,000 windfall, 55% would choose to save it, with 16% spending it on a holiday, 10% sharing it with a friend/family member, and 6% going shopping
• 59% of parents with children aged 8-18 have opened savings accounts for their children, mainly to instil a savings habit but also to help to protect their financial future
• While 24% of people say they can’t afford to save or that they can’t form a savings habit, just half of those eligible say they avail of PRSI and tax relief entitlements.
• 42% of people do not have an emergency or “rainy day” fund

Switching to save

The research highlighted a significant jump in the number of people planning to switch service providers to get a better deal over the coming year:

• 58% are considering switching electricity and/or gas provider this year, up from 42% who thought about doing so last year
• 56% are considering switching car insurance provider, up from 37%
• 53% are considering switching broadband, up from 37%
• 45% are considering switching TV provider, up from 28%
• 41% are considering switching mobile provider, up from 30%

However, the number of people considering switching their main bank accounts was lower – with 25% considering switching savings account (up from 14%) and 21% considering a current account switch (up from 10%).

Positive sentiment on economy and life in Ireland

• There’s been a marked rebound in consumer sentiment, with respondents now more positive than they were in 2022 about the economy, the direction that Ireland is heading in, and our personal financial situation.
• More people are positive about the direction Ireland is heading in (38%) than at any point since January 2022, while over half of people (52%) still feel the country is heading in the wrong direction (52%).
• 61% expect the economy to get better or stay the same over the coming year – again the most upbeat sentiment expressed in this research since January 2022
• 23% say they are better off now compared with a year ago – a big jump from the 18% recorded in Q2 2024, while 29% expect they will be better off this time next year. Although this is an improvement on previous quarters, 30% of people still say they expect to be worse off next year, up slightly from the 28% recorded in Q2 2024.

Commenting on the research, Leontia Fannin, Chief Sustainability and Corporate Affairs Officer at PTSB, said:

“Our research shows that Irish people have a significant appetite to save. That’s for a number of reasons – for a rainy day, a sense of security, and for younger cohorts, for buying a house.

It’s reassuring to see the savings habit remaining so strong at the same time as wider consumer sentiment towards the economy is on the up. However it is clear that there are further opportunities to save, given just half of those eligible are availing of entitlements. The last few years have been challenging for many and it’s positive that consumers are feeling more confident that cost of living pressures are easing and the national economic picture is improving.

That has also translated into a keen awareness of the need to get value for money from service providers, which is fuelling a big increase in the number of people considering shopping around for a better deal for power and gas, broadband, car insurance, and their mobile phone service.” 

Claire Cogan, Director of BehaviourWise, said:

The high cost of living continues to bite for many people, but it has taught us to be careful with our money - we have learned to adjust to it. We are more confident now in our ability to manage our finances than we were 2 years ago. More of us have money left over at the end of the month, and feel we could handle a major unexpected expense, compared to 2 years ago. Women in particular have become adept at finding ways to save money on a day-to-day basis.

There are also differences between men and women when it comes to savings. Women prioritise security while men prioritise returns.

Editors’ note

PTSB’s Reflecting Ireland research is conducted every quarter and is based on an online survey of 1,000 adults across Ireland. The sample was nationally representative of the population based on age, gender, social class and religion. Fieldwork was conducted on July 4-15 2024. Full results are available on request.

Read the full #ReflectingIreland Report here