Younger people saving less - survey

Only 36 per cent of people aged under 50 save regularly, according to the latest Nationwide UK (Ireland)/ESRI Savings Index.

This compares to 41 per cent of those aged over 50 and a national average of 38 per cent.

There was an 11 point decline in the Savings Index in February driven by a 23 point drop in the Savings Attitude sub index. The factors driving the weakening of the index in February were a reduction in the percentage of people saving regularly from 40 per cent to 38 per cent and an increase in the percentage of people who were not saving at all from 25 per cent to 27 per cent.

The survey indicates that 63 per cent of people in the under 50 age category believe they are saving less than before as against 52 per cent of those aged over 50 years.

While older people are more likely to store away money for a rainy day, they are critical of Government policies, with 64 per cent saying such policies discourage saving compared to 53 per cent of younger people.

“There is a clear pattern of behaviour emerging which shows that people still want to pay off debt or save in preference over spending. However, less and less people are happy with the levels they are currently able to save or think they may be able to save in the future," said Brendan Synnott, managing director of Nationwide UK (Ireland).

"It is also apparent that the over and under 50s are facing different pressures which are affecting their attitude towards saving. The under 50’s group must contend with the expense a younger family brings and larger mortgage debt and as a consequence regular saving, although desirable, is less achievable," he added.