Savings culture growing

THE ATTITUDE towards saving became more positive in January, a new index has shown, with a rising number of people saving regularly. According to the Nationwide UK (Ireland)/ESRI Savings Index, 48 per cent of people are now saving on a regular basis, compared with 40 per cent in December, the highest figure in the survey’s two-year history.

The overall index soared by 23 points in January compared to the prior month, bringing it to 114. That was the highest level since October 2011. Savers are also more positive about the current environment for keeping their cash, with 34 per cent saying it was a good time to save compared with 28 per cent a year earlier.

However, those who said they did not save at all remained 6 per cent higher than a year ago, at 31 per cent. That compares with 33 per cent in December.

More than half of those surveyed said Government policy was discouraging saving, the same level as January 2011. “Overall the data is showing that the savings culture in Ireland remains strong and is growing as demonstrated by the 23 point increase in the overall index since last month and 6 point increase versus January 2011,” managing director of Nationwide UK (Ireland) Brendan Synnott said. However, he said the rise in the number of people not saving at all was “cause for concern”.