Just three consumers in 10 understand basic concepts in personal finance, according to a survey carried out for the Irish Association of Pension Funds ahead of its annual defined contribution pensions conference today.

The survey, carried out by Red C with 1,017 people across the State, asked three questions on the impact of interest rates, the effect of inflation on savings and whether investing in a single company’s stock or a unitised fund usually provided a safer return.

Just 31 per cent of respondents got all three questions right, with just over half (53 per cent) correctly answering two of the three. Measured against similar studies in Germany, the Netherlands, the United States and Japan, Irish consumers were below the average.

Men fared better than women in the survey, scoring with more accuracy on all three questions. Older consumers were also more likely to be financially literate.

“With mortgages the biggest commitment people will take on and pensions the biggest asset they will have, it is crucial that people know how inflation, interest rates and diversification of investments can impact their financial security,” said Jerry Moriarty, director of policy at the association.