42% of Irish people not saving money

Four in 10 people do not put any money aside for emergencies and unforeseen circumstances, a survey has found.

The Nationwide UK (Ireland) ESRI savings index found 42 per cent of Irish people do not put any money away in banks or building societies – significantly ahead of the 36 per cent level recorded a year ago.

The proportion of people saving regularly has decreased during 2012 and now stands at 34 per cent.

This compares to an average for 2011 of 39 per cent and 40 per cent in 2010.

The index also showed a slight increase in the proportion of people who believe Government policy encourages saving, up to 11 per cent in October from 10 per cent in September.