Most consumers not planning savings splurge, survey finds

Research shows many consumers intend to keep saving even as economy opens up

Seventy-nine per cent of those surveyed who identify as savers indicated they intended to keep putting money aside. Photograph: iStock

Seventy-nine per cent of those surveyed who identify as savers indicated they intended to keep putting money aside. Photograph: iStock

 

Consumers may have saved hard during the Covid-19 pandemic but expectations that they would go on a spending splurge may be misplaced, according to a new survey.

The research by Kantar for Permanent TSB of almost 1,000 adults showed most respondents expect to spend just over a quarter of their pent-up savings while holding on to the rest.

Retailers will likely have to work harder to persuade consumers to spend their savings now the economy has reopened, with 79 per cent of those surveyed who identify as savers indicating they intend to keep putting money aside.

Just over half of those who expressed a wish to continue saving said they intended to put the same amount aside for a rainy day as they do now, while 23 per cent expressed a wish to up their current saving levels.

The research found that 33 per cent of adults surveyed expect to be better off this time next year, while 20 per cent believe they are doing better financially than they were this time a year ago. Younger people are particularly confident about their financial future, with 59 per cent of those aged 18-24 believing they will be better off in a year’s time, compared with just 19 per cent of those aged 55-64.

In terms of plans for spending, 65 per cent of respondents said they would spend on holidays over the next three months, with 35 per cent paying out more for home improvements. A similar percentage said they intended to spend on entertainment, with 28 per cent planning to focus their spending on “family and friends”.

The research was conducted in July among 997 adults aged over 18.