More Optimism Towards Saving In 2012

The Nationwide UK (Ireland) / ESRI Savings Index increased by 23 points in January to bring the Index to 114, the highest level since October last year and six points higher than January 2011.

In January, the number of people saving regularly rose to 48%, an 8 point increase on December. This also represents an 8 point increase on the figures for January 2011 and is the highest level recorded since the Index began collating data in January 2010.

The percentage of people not saving at all fell two points to 31% in January, but this is 6 points higher than the level recorded in January 2011 (25%).

Savers have a more optimistic outlook towards the saving environment with 34% believing that now is a good time to save compared with just 27% in December and 28% in January 2011. The percentage of people who believe that now is not a good time to save fell 7 points to 41% in January 2012.

The percentage of people who think that government policy discourages saving remains high at 55%, the same level as recorded in January 2011.

Commenting on the Index, Brendan Synnott, Managing Director of Nationwide UK (Ireland) said: "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.

"However, there has also been an increase since this time last year in the percentage of people not saving at all which now stands at 31%. This is a cause for concern if it reflects an inability to save amongst a large proportion of people.

"Although there appears to be a greater degree of optimism among consumers about their ability to save, the proportion of people who believe that government policy discourages saving remains high and at the same level as January 2011."

(CD/GK)