More than 50% of people saved €200+ per month
More women (56%) than men (38%) likely to save less than €200 per month
50% plan to maintain level of savings post-pandemic
Men who saved more during the pandemic saved an average of €521 per month, while women averaged approximately €342 per month. And while one third of men said that they plan to spend more now that we are no longer living with restrictions, only one fifth of women plan to do the same.
Aviva Life & Pensions Ireland (Aviva) has released findings from its latest nationwide savings survey of 1,200 adults nationwide which looked at the amount of money that people managed to save during the pandemic, and what they plan to do with their nest egg.
Commenting on the findings Eoin Kennedy, Aviva said: “We asked people whether or not they increased their savings during the pandemic, and while there were many who didn’t, there were also a lot who did. Of those who did manage to increase their savings, we found that those aged 25-34 and older people (55+) were most likely to have saved during that time – with the average amount saved overall reaching almost €400 per month.
“Pandemic savings, a never before heard phrase in the pre-Covid world, has now become a bit of a buzz word with commentators suggesting that these savings could have far-reaching implications for the economy – not least on the property market, which some say is being driven by the fact that people have more in the bank following the pandemic.”
Quarterly Financial Accounts from the Central Bank for Q4 2021 indicated that household savings in Ireland, although €1 billion lower in that quarter was €6.81bn compared with €2.96bn in Q4 20191.
While this growth in savings certainly may not reflect the underlying experiences of all households in the country, it does point to a very significant increase in the amount of money that we, as a nation, were able to put by as a result of the restrictions.Eoin Kennedy, Aviva
“In cases where the successive lockdowns didn’t hurt people economically or financially, a positive outcome may be that a good many people managed to fall into a savings pattern – half of whom say they plan to maintain this level of savings into the future. This is evidenced further by the latest statistics issued by the Central Statistics Office2 where households saved 19% of their income in Q1, more than the previous two quarters and almost twice the pre-pandemic average”.
The Aviva survey found that gender had a definite impact on the amount saved, with findings revealing that more women (56%) than men (38%) were likely to save less than €200 per month, while almost triple the number of men (26%) to women (9%) were able to save more than €1,000 per month.
Save versus Spree
The Aviva survey found that when it comes to the future saving or spending plans for our hard-earned savings:
- A quarter will save more
- A quarter will spend more
- Half will maintain their current savings level
- Younger age groups are more likely to spend more – 44% of those age 18-24 said this is what they plan to do compared with just 22% of those over 55
- Those in the 45–54-year age bracket is the most likely group to spend less (36%)
“A quarter of those surveyed will spend more, which will be a boost for the economy, but the same number also plan to spend less. While the economy and the SME sector in particular need consumers spending, it’s understandable that many households are feeling the pinch right now in light of the current inflation levels – especially coming on the back of a difficult couple of years. We are still living in uncertain times, and many people feel the prudent thing to do is to maintain a good safety net in case times get tougher”, concluded Eoin Kennedy.