Attitudes to saving cash change after Christmas shopping

Brexit and Trump presidency may impact on 2017 savings behaviour

The number of people saving increased in January by 13%  in the under-50s age group, and 3%  among the over-50s

The number of people saving increased in January by 13% in the under-50s age group, and 3% among the over-50s

 

Irish attitudes towards saving money improved in January following the pressures of Christmas spending and an increase in positivity about consumers’ ability to put money aside.

The Nationwide UK (Ireland) Savings Index, which measures overall consumer sentiment in the area, rose to 121 points in January from 112 in December.

Simultaneously, its Savings Attitude Index, which asks people about their saving behaviour and ability, rose from 110 to 130 points for the month, the biggest monthly increase since May 2016.

The number of people saving increased in January by 13 per cent in the under-50s age group, and 3 per cent among the over-50s. The proportion of people not saving also fell.

However, the Savings Environment Index, which gauges whether people believe it is a good time to save and whether government policies encourage it, was at just 115 points from 112 points the previous month.

Government policies

Sentiment toward government policies on saving was more negative in January compared to December, driven largely by the under-50s, the survey found. There was a 1.8 per cent decrease in the proportion of positive responses toward government policies on saving, and a 7.8 per cent increase in the proportion of negative responses among the under-50s.

Half of respondents said they were saving about the amount they should, and 4.7 per cent said they were saving more, an indicator of precautionary attitudes.

Brendan Synnott, managing director of Nationwide UK (Ireland), said this last statistic was relatively high for January.

“As Brexit negotiations begin in earnest this year, and as the impact of the US presidential election takes shape, it will be interesting to see how saving behaviour is impacted.

“It is not surprising that people felt better about saving in January after the pressures of Christmas have passed.”