It's your Mortgage Day!
‘Change Your Bank Day’ on May 10th to facilitate Saturday switching.
Future security is the key motivation for saving, with 36% of savers putting money aside to have a financial safety net and 15% saving because of uncertainty about the future. KBC’s ‘Save and Spend Barometer’, conducted in advance of the bank’s Change Your Bank Day on May 10th, found that three quarters (77%) of Irish consumers have a savings account, and of these savers 74% save a set amount, 21% save when they can and 7% worry that they’re not saving enough.
Approaching the summer, 12% of savers are currently saving for a holiday (up from 7% in January), with 8% saving for their children’s education and 8% for a long-term nest egg.
Despite the strong penetration of saving in Ireland, just one in three (34%) agree with the statement that Irish people have a good savings habit.
Six in ten (60%) find it difficult to save, with over half (54%) of those respondents saying they need to earn more money to save and 35% wanting to pay off debts first. One in four (25%) who find it difficult to save said they spend all their income (rising to 30% of under 35 year olds) and 21% said they keep dipping into their savings at the end of each month. Those who find it difficult to save tend to be between 25 – 34 years old, have children and are paying a mortgage.
Discussing the research, Dara Deering, Executive Director and Head of Retail Banking, KBC Bank Ireland said: “Despite economic pressures over the past few years, the percentage of savers has remained very consistent and our Save and Spend Barometer shows a strong savings habit in Ireland, with many putting aside a set amount regularly. Future proofing is one of the main factors for saving, followed by a wide range of lifestyle elements such as education, property and holidays.
“For those who find it difficult to save the reality is that a lack of disposable income is definitely a challenge, but starting a savings habit, even with small but regular set amounts can make a difference. KBC’s Change Your Bank Day on Saturday May 10th will provide advice for those reviewing their personal finances and consider switching providers.”
The research was conducted with 500 consumers on behalf of KBC by Millward Brown.