2023
0
Ireland Savings Market Report 2023
2023-03-01T03:03:01+00:00
OX1154585
1495
160940
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Report
en_GB
“With huge uncertainty and anxiety around what the coming months hold, the current climate is one in which a high level of precautionary saving would ordinarily be expected. However, given…

Ireland Savings Market Report 2023

£ 1,495 (Excl.Tax)

Description

“With huge uncertainty and anxiety around what the coming months hold, the current climate is one in which a high level of precautionary saving would ordinarily be expected. However, given the current cost-of-living crisis, many consumers are in no position to add to savings or make investments.”
– Brian O’Connor, Senior Consumer Analyst

Key issues covered in this Report

  • The impact of COVID-19 on savings in NI and RoI.
  • Market drivers and dynamics around savings.
  • Ownership of savings and investment products, and the value of savings and investments.
  • Future plans for savings and investments.
  • Whether consumers aimed to save a specific amount in the last 12 months, and whether they met or exceeded these targets.
  • The reasons why consumers are currently saving.
  • General attitudes towards savings and investments.

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The impact of COVID-19 on savings
      • Figure 1: Short, medium and long-term impact of COVID-19 on savings, 2023-27
    • Market Drivers
    • RoI economy set to grow in 2023, while NI economy to contract
    • Most say financial situation is healthy or OK, but situation getting worse
    • High rate of inflation hitting spending power and confidence
    • Who’s Innovating?
    • The Consumer
    • 78% of consumers have some level of savings or investments
    • Standard savings accounts and pensions most common products
      • Figure 3: Savings and investment products currently owned, NI and RoI, 2022
    • Intentions around savings/investments tend to be cautious
      • Figure 4: Savings and investment products that consumers plan on arranging within the next 12 months, NI and RoI, 2022
    • Around six in 10 aimed to save/invest a specific amount over last year
      • Figure 5: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, NI and RoI, 2022
    • Most either met or exceeded savings/investment targets
      • Figure 6: Whether consumers saved/invested more, less or what they intended to save/invest over last 12 months, NI and RoI, 2022
    • Half of all savers are saving for the proverbial rainy day
      • Figure 7: Reasons for saving, NI and RoI, 2022
    • Consumers have broadly cautious approach to saving
      • Figure 8: Attitudes towards savings and investments, NI and RoI, 2022
  3. The Market – Key Takeaways

    • RoI economy set to grow in 2023, while NI economy to contract
    • Most say financial situation is healthy or OK, but situation getting worse
    • High rate of inflation hitting spending power and confidence
  4. Market Size and Forecast

    • Total savings of Irish consumers to exceed €200 billion in 2023
      • Figure 9: Total deposits from private households, IoI, RoI and NI, actual, estimated, forecast and projected, 2018-28
    • Continued growth to bring total value beyond €250 billion by 2028
      • Figure 10: Index of total deposits from private households, RoI and NI, actual, estimated, forecast and projected, 2018-28
  5. Market Drivers

    • Contrasting growth outlooks for Irish economies in 2023
    • NI economy forecast to contract by 1% in 2023
      • Figure 11: Economic growth forecasts, %, NI and UK, 2021-23
    • RoI economy expected to perform strongly in 2023, growing by 4.5%
      • Figure 12: GDP growth, %, actual and forecast, RoI, 2021-23
    • Most consumers describe financial situation as healthy or OK…
      • Figure 13: Consumers’ assessment of their own financial situation, NI and RoI, 2022
    • …but most also say situation has deteriorated as against a year ago
      • Figure 14: Consumers’ assessment of how their financial situation compares to a year ago, NI and RoI, 2022
    • Labour market in NI remains strong, but signs of weakening
      • Figure 15: Unemployment forecasts, %, NI and UK, 2021-23
    • Unemployment remains low in RoI too, despite external challenges
      • Figure 16: Unemployment rate, %, actual and forecast, RoI, 2021-23
    • Soaring inflation having far-reaching impact on consumers
      • Figure 17: Rate of inflation, actual and forecast, %, UK, 2021-23
      • Figure 18: Inflation rate, %, actual and forecast, RoI, 2021-23
    • Majority of consumers affected by impact of inflation over last 2 months
      • Figure 19: Whether consumers have been affected by any of these issues over the last 2 months, NI and RoI, 2023
    • Most consumers concerned to some degree about coming year or so
      • Figure 20: How consumers feel about how their financial situation will change over next year or so, NI and RoI, 2023
    • Savings ratio likely to continue to fall through 2023
    • Both BoE and ECB base rates rising, but savers not benefiting equally
  6. Companies and Innovations – Key Takeaways

    • Gamified saving and investment
    • Gifting savings
    • Interest changes see shake-up in product offering
  7. Who’s Innovating?

    • Focus on education and gamification
    • Offering savings and investment accounts as gifts
  8. Companies and Brands

    • Allied Irish Bank
    • Key facts
    • Product portfolio
    • Recent developments
    • An Post (RoI only)
    • Key facts
    • Product portfolio
    • Recent developments
    • Bank Of Ireland
    • Key facts
    • Product portfolio
    • Recent developments
    • Danske Bank
    • Key facts
    • Product portfolio
    • Recent developments
    • First Direct (NI only)
    • Key facts
    • Product portfolio
    • Recent developments
    • KBC Bank Ireland (RoI only)
    • Key facts
    • Product portfolio
    • Recent developments
    • Nationwide (NI only)
    • Key facts
    • Product portfolio
    • Recent developments
    • Permanent TSB (RoI only)
    • Key facts
    • Product portfolio
    • Recent developments
    • Santander (NI only)
    • Key facts
    • Product portfolio
    • Ulster Bank
    • Key facts
    • Product portfolio
    • Recent developments
  9. The Consumer – Key Takeaways

    • 78% of consumers have some level of savings or investments
    • Standard savings accounts and pensions most common products
    • Intentions around savings/investments tend to be cautious
    • Around six in 10 aimed to save/invest a specific amount over last year
    • Most either met or exceeded savings/investment targets
    • Half of all savers are saving for the proverbial rainy day
    • Consumers have broadly cautious approach to saving
  10. Value of Savings and Investments

    • More than three quarters of consumers have savings or investments
      • Figure 21: Value of savings and investments, NI and RoI, 2022
    • C2DEFs, lower earners most likely to have no savings or investments
      • Figure 22: Consumers who say they have no savings or investments, by social class and annual household income, NI and RoI, 2022
    • Younger and lower-income consumers most likely to have modest savings
      • Figure 23: Consumers who say they have less than £500 (NI)/€600 (RoI) in savings or investments, by gender and age, NI and RoI, 2022
      • Figure 24: Consumers who say they have less than £500 (NI)/€600 (RoI) in savings or investments, by social class and annual household income, NI and RoI, 2022
  11. Ownership of Savings and Investment Products

    • Standard savings accounts and pensions most popular products
      • Figure 25: Savings and investment products currently owned, NI and RoI, 2022
    • Women, over-45s and higher earners most likely to have savings accounts
      • Figure 26: Consumers who currently own an instant or easy-access savings account, by gender and age, NI and RoI, 2022
      • Figure 27: Consumers who currently own an instant or easy-access savings account, by social class and annual household income, NI and RoI, 2022
    • Younger consumers and women less likely to have pensions
      • Figure 28: Consumers who currently own a pension, by gender and age, NI and RoI, 2022
    • Pension ownership also lower among part-time workers
      • Figure 29: Consumers who currently own a pension, by current working situation, NI and RoI, 2022
  12. Future Plans for Savings and Investments

    • Future intentions around savings/investments quite conservative
      • Figure 30: Savings and investment products that consumers plan on arranging within the next 12 months, NI and RoI, 2022
    • Men, young, ABC1s and high earners planning on arranging pensions
    • Men, ABC1s and well-off consumers considering stocks and shares
  13. Savings and Investments over the Last 12 Months

    • Most consumers aimed to save/invest a certain amount over last year
      • Figure 31: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, NI and RoI, 2022
    • Ambition to save highest among younger consumers
      • Figure 32: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, by gender and age, NI and RoI, 2022
    • Consumers renting privately or living with family aiming to save
      • Figure 33: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, by current housing situation, NI and RoI, 2022
    • ABC1s and high earners most likely to have set out to save or invest
      • Figure 34: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, by annual household income and social class, NI and RoI, 2022
      • Figure 35: Whether consumers aimed to save/invest a certain amount of money over the last 12 months, by assessment of own financial situation, NI and RoI, 2022
    • Majority of consumers met or exceeded savings/investment intentions
      • Figure 36: Whether consumers saved/invested more, less or what they intended to save/invest over last 12 months, NI and RoI, 2022
    • Young, ABC1s and financially comfortable consumers exceeded own targets
  14. Reasons for Saving

    • Almost half of all savers putting money away for future need
      • Figure 37: Reasons for saving, NI and RoI, 2022
    • Older consumers most likely to be saving for a rainy day
      • Figure 38: Consumers who are saving for a rainy day, by age and gender, NI and RoI, 2022
    • Consumers of all income levels likely saving for holidays
      • Figure 39: Consumers who are saving for a holiday, by social class and annual household income, NI and RoI, 2022
    • Homeowners saving for home improvements
      • Figure 40: Consumers who are saving for home improvements, by current living situation, NI and RoI, 2022
    • Young men most likely to be saving for a new car or vehicle
      • Figure 41: Consumers who are saving for a new car, by gender and age, NI and RoI, 2022
    • Older, wealthier consumers preparing for retirement
      • Figure 42: Consumers who are saving for retirement, by gender and age, NI and RoI, 2022
      • Figure 43: Consumers who are saving for retirement, by social class and annual household income, NI and RoI, 2022
    • Almost a fifth of young consumers are saving for qualifications/training…
      • Figure 44: Consumers who are saving for qualifications/training, by age, NI and RoI, 2022
    • …while parents of young children saving up for their education
      • Figure 45: Consumers who are saving to pay for my/family member’s education expenses (eg university), by age of children (if any), NI and RoI, 2022
  15. Attitudes towards Saving and Investment

    • Caution, concern and conservatism characterise consumers’ outlook
      • Figure 46: Attitudes towards savings and investments, NI and RoI, 2022
    • Caution around savings/investments consistent across demographics
    • Preference for saving over using credit similarly consistent across demographics
    • Consumers aged 25-44 most concerned about not saving enough for retirement
    • ABC1s and high earners most likely to save regularly at payday
      • Figure 47: Consumers who add to their savings on their payday, by social class and annual household income, NI and RoI, 2022
    • ABC1s and younger consumers saving more due to cost-of-living crisis…
      • Figure 48: Consumers who say the cost-of-living crisis has encouraged them to save more in the last 12 months, by social class and age, NI and RoI, 2022
    • …but higher returns would encourage those with spare cash to save more
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • Generational cohort definitions
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Consumer

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Data

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*databooks not available with UK B2B Industry reports.

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