Attitudes to Savings - Ireland
Datamonitor
May 1, 2007 95 Pages - SKU: DFMN1497261
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Countries covered: Ireland
For those consumers seeking to invest for their future, the booming property market has been the major beneficiary. Many consumers have released equity on their own home in order to invest in properties at home or abroad. As property prices have grown well beyond the rate of inflation this return on investment far outstrips any return from traditional savings accounts. Short terms savings towards a specific purchase have also been affected as has the growth of interest free credit schemes by retailers and 0% credit card offers. Given the choice between saving first and purchasing later, or purchasing now and then repaying later, today’s consumer has increasingly chosen the latter.
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- Introduction
- Consumers spending, not saving
- Investing rather than saving
- Buy now pay later beats save now buy later
- Tide many be turning back in favour of savings!
- Summary of Key Findings
- Less than half believe saving is important
- Consumer attitudes not driving behaviour
- Majority of consumers saving for a rainy day
- Rising interest rates to generate business
- Holidays are an important motivation for saving
- Middle-aged have strongest savings ethos
- More switchers in ABC1 group
- Savings war in RoI
- Developing a savings habit
- Controversy over charging continues
- RoI savings market valued at €144 billion
- Term accounts growing in popularity
- Long-term saving increasing in RoI
- Next 12 months critical
- Market Background
- Background
- Incentives to save
- Taxation
- NI
- RoI
- Financial regulator
- IFRSA
- Financial Services Authority
- Internal Market Environment
- Interest rates rise: good for savers, bad for borrowers
- Figure 1: UK and eurozone interest rates, 2001-07
- What’s happening?
- With what effect?
- Who will it affect?
- Controversy continues to haunt industry
- Banking complaints in NI hold opportunity for UK banks
- SSIA experience may have eclipsed controversy
- Will consumers maintain the savings habit?
- ISA
- CTFs have an impact in UK
- Indebtedness affects ability to save
- Credit card debt
- Mortgage debt
- Global stock slide highlights security of standard savings
- What happened?
- What was the impact?
- What has happened since?
- Broader Market Environment
- What are consumers worried about?
- Figure 2: Current worries, NI and RoI, 2006
- Not putting money away for retirement
- Consumers’ concerns not consistent with spending decisions
- Property prices having an impact
- What has happened in the housing market?
- Figure 3: Property prices, RoI and NI, 2000-06
- How does this affect the savings market?
- Is the property market boom over?
- Population changes
- Figure 4: Population change, by age group, NI, 2000-20
- Competing for the grey pound/euro
- Large middle-aged RoI group is good news
- Figure 5: Population change, by age group, RoI, 2000-20
- Long-term responsibilities start later
- ‘Kidulthood’ lasts longer
- Figure 6: Average age at marriage, NI and RoI, 2000-05
- Reaching ‘kidults’
- Parenthood starts later but lasts longer
- Figure 7: Average age of women at birth of first child, NI and RoI, 1991-2005
- Impact on the savings market
- Mortgages last longer
- Figure 8: Average age of first-time buyers, UK, 1974-2005
- Longer mortgage terms affecting middle-aged ability to save
- Market Value and Forecast
- Figure 9: Value of savings market, NI and RoI, 2003-12
- Forecast
- Increased prosperity benefiting savings market
- Figure 10: Segmentation of the savings market, by revenue generated, NI, 2003-07
- Increased long-term saving in RoI
- Figure 11: Segmentation of the savings market, by revenue generated, RoI, 2003-07
- Companies and Financial Products
- Competitive overview
- RoI savings war timeline
- Maturing SSIAs lead to battle for customer retention
- NI overview
- Company Profiles
- Banks
- Abbey
- AIB Group (Allied Irish Bank)
- Alliance & Leicester
- Bank of Ireland
- HBOS (Halifax Bank of Scotland)
- IIB
- Permanent TSB
- National Irish Bank
- Northern Bank
- Ulster Bank
- Anglo Irish Bank
- Building societies
- Irish Nationwide
- Nationwide
- Northern Rock
- Other financial institutions - Post Office/An Post
- Other financial institutions - Credit Unions
- Online operators
- Cahoot.com
- Egg.com
- Rabodirect.ie
- Supermarket banking
- Tesco
- Asda
- Sainsbury’s
- Consumer: Ownership of Savings Accounts
- Falling deposit account ownership in RoI
- Figure 14: Ownership of a deposit savings account, NI and RoI, 2002-06
- Ownership dips as RoI savers begin to spend
- Instant access is key factor for Irish savers
- Figure 15: Penetration of savings and investment products, RoI and NI, 2003-06
- Consumer: Attitudes Towards Saving and Finance
- Figure 16: Agreement with savings-related statements, NI and RoI, 2006
- Are NI consumers better savers?
- RoI consumers ‘walk the talk’
- Are men better savers?
- Figure 17: Agreement with savings-related statements, by gender, NI and RoI, 2006
- Why is this happening?
- Targeting customers by gender
- The ‘sleeping beauty’ mentality
- Targeting by demographic
- Figure 18: Agreement with savings-related statements, by age, NI, 2006
- Figure 19: Agreement with savings-related statements, by age, RoI, 2006
- Middle-aged people have strongest savings ethos in NI
- Young people follow the money
- Catering for the grey market
- Some consumers may be looking for alternative to property investment
- Attitudes towards savings determined by income and education
- Figure 20: Agreement with savings-related statements, by socio-economic group, NI, 2006
- Figure 21: Agreement with savings-related statements, by socio-economic group, RoI, 2006
- Can better short-term deals help generate new business
- Consumer: Regional Differences
- Northern Ireland
- Figure 23: Top ten things people are saving for, by region, NI, 2006
- Republic of Ireland
- Figure 24: Top ten things people are saving for, by region, RoI, 2006
- What does this mean for local branches?
- Consumer: What are People Saving For?
- Figure 25: What people are saving for, NI and RoI, 2006
- Saving for security
- Poorer consumers save for a rainy day
- Figure 26: Top ten things people are saving for, by socio-economic group, RoI, 2006
- Men save for cars, women save for holidays
- Figure 27: Top ten things people are saving for, by gender, RoI, 2006
- Age determines savings priorities
- Figure 28: Top ten things people are saving for, by age, NI, 2006
- Parental responsibility kicks in for 35-44-year-olds
- Putting the kids through university
- Older consumers more likely to save for rainy day
- Saving for retirement
- Saving for retirement a priority for ABC1 group
- Men a key target for retirement savings accounts
- Hospital bills a grey issue
- Consumer: Types of Saver?
- Figure 29: Breakdown of cluster groups, NI and RoI, 2006
- Northern Ireland: Types of saver overview
- Figure 30: Top ten things people are saving for, by cluster groups, NI, 2006
- Committed Savers should be key target for banks
- Figure 31: Agreement with savings-related statements, by cluster groups, NI, 2006
- Sceptical Savers unlikely to provide potential
- Routine Savers take the long view
- Financially Burdened have good intentions…
- …but may need help to follow through
- Republic of Ireland: Types of saver summary
- Figure 32: Top ten things people are saving for, by cluster groups, RoI, 2006
- Live for Today group may provide potential
- Turning good intentions into good business
- Figure 33: Agreement with savings-related statements, by cluster groups, RoI, 2006
- Struggling savers attracted by instant-access accounts
- Attitudes do not determine behaviour
- The Future
- A soft landing from the property boom desirable
- Interest rates to continue to rise
- Impact of Competition Commission’s proposals
- Appendix
- Definitions
- Geographical, national and regional definitions
- Conversion factors
- BMRB Target Group Index sample sizes
- Abbreviations
- Big four banks’ (NI) complaints
- Banks’ complaints in RoI
- Additional demographic data tables
- Figure 34: Forecast population change, by age, NI, 2000-20
- Figure 35: Forecast population change, by age, RoI, 2000-20
- Figure 36: Health of the economy, NI and RoI, 2002-07
- Figure 37: Percentage in employment, by age group, NI and RoI, 2000 and 2005
- Figure 38: Average number of hours worked a week, by gender and working status, NI and RoI, 1998-2005
- Ownership of savings accounts
- Figure 39: Ownership of a deposit savings account, by gender, age, socio-economic group, working status, marital status and lifestage, NI and RoI, 2006
- Consumer: What Are People Saving For?
- Figure 40: Things people are saving for, by gender, NI, 2006
- Figure 42: Top ten things people are saving for, by age, RoI, 2006
- Consumer Attitudes Towards Saving
- Figure 43: Agreement with selected finance statements, NI and RoI, 2006
- Figure 44: Agreement with savings-related statements, by region, NI, 2006
- Figure 45: Agreement with savings-related statements, by region, RoI, 2006
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