New survey from the ILCU on income and savings conditions for Irish households shows:
- 1,696,000 people in Ireland have EUR100 or less left at the end of each month once the bills and taxes are paid, up 32,000 on December 2013 figure.
- Total population of Ireland aged 15 and older is estimated by the CSO to be 3,585,400, which means that a whooping 47% of people are living on incomes with basically zero risk cushion when it comes to covering normal expenses and with no means for securing retirement savings.
- 1,154,000 live on income that delivers only EUR50 or less at the end of the month for payments and consumption over and above the necessities and number that is up 56,000 on December 2013.
- On improvement side, 470,000 people are left with zero disposable income after paying their normal bills - a drop of 10,000 on December 2013 survey.
- Another improvement is that people are increasing their savings capacity: 44% of respondents in April 2014 survey said they were in the position to save, a rise on 39% in April 2013. The above suggests that precautionary savings might be picking up again.
Here is a recent research note from ESRI on trends in Irish savings: http://www.esri.ie/UserFiles/publications/JACB201415/RN20140101.pdf
One trend is the disconnect between savings of 21-35 year olds (up and sustained above other demographic groups) and those over 35 years old (sustained gap to younger demographic group):
And here is intensity of propensity to save:
The above shows that propensity to save in first instance of surplus income (precautionary savings-consistent indicator) is stable for older demographic, up-trending for middle-aged demographic and rising for younger demographic.