Irish people think they are more financially secure than they really are and only buy financial products grudgingly, according to new research by Royal Liver. Laura Slattery reports.
A financial awareness report commissioned by the insurance company reveals that although most people believe that they need products like pensions and life assurance, they put off buying them for as long as possible.
Royal Liver has invented a new acronym to describe this group: FEATHERs, or "Financially Empowered Adults Trying Hard to Evade Responsibility".
FEATHERs are aged between 20 and 40 and have annual income in excess of €25,000. Their disposable income is enough to allow them to save, but they prefer to live for today and avoid thinking about getting old.
Impulse purchasing of luxury products is the order of the day, while putting money aside for retirement is low down the list of priorities, if it even makes it onto the list at all.
FEATHERs also rely on financial advice from parents and friends instead of making appointments with financial advisers.
"Although most of us know what we should be doing to provide for the future, the evidence would suggest that we don't always translate our gut feelings into actions," said Mr Steve Burnett, Royal Liver chief executive.
Over half of people in the 18 to 24 age group believe that they should start a pension before the age of 30. However, only 18 per cent of those under 35 years actually have a pension, according to industry figures.
Almost three-quarters of the 1,002 adults surveyed said they preferred to spend their money, not save it.
"The Irish know the virtue of saving for a rainy day - the trouble is that, in a sunny economy, many seem to believe the rain has gone for good," Mr Burnett said.
A third of people claimed property would be the best way to invest €20,000, compared to 21 per cent who opted for a savings account and 7 per cent who would invest in a pension.
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