CCPC report reveals the state of Irish consumers financial well-being
It is the first financial well-being study conducted in Ireland.
A new report published yesterday by the CCPC has revealed that 52% of people in Ireland are meeting their current financial commitments, but have little provision against unexpected costs that may arise.
The research, which builds on the Financial Regulator’s financial capability report in 2008, looked at the behaviours and circumstances that influence financial decision making and well-being. The definition of financial well-being is described by the CCPC as the extent to which Irish people are able to meet all of their current financial needs comfortably and their financial resilience to do so.
Overall, the report finds that people in Ireland are doing well in terms of general financial well-being, with an average score of 64 out of 100. When compared to other nation, the overall score for Ireland is lower than Norway (77) but higher than Australia and New Zealand (both 59) and on a par with Canada (65). A study of this kind with similar definitions of financial capability and financial well-being is yet to be undertaken in the UK.
The report ultimately found that the key behaviours which help improve financial well-being are ‘active saving’ and ‘not borrowing for daily expenses’. Financial confidence and financial education can also help to improve individuals’ financial well-being.
The study grouped respondents into four categories of relative financial well-being:
25% of people who were considered to be financially ‘secure’. They had a strong current financial situation and provisions for the future. However, there is some improvement to be made in planning for retirement for this group of people.
52% of respondents were ‘doing fine now, but with little put by’. These people performed well in meeting their current commitments with a positive level of financial comfort, but they had less resilience for the immediate future and for retirement.
16% of respondents were ‘just about coping’ and appear to be at risk of falling into financial difficulties with little resilience for the future.
7% of respondents were ‘struggling’ and are in financial difficulty now with no reserves to protect themselves now or into the future.
Speaking at the launch of the CCPC’s report, Minister of State for Training and Skills, Mr. John Halligan TD said, “Identifying financial capability across the population and what influences it provides us with a real world understanding of the challenges facing people in Ireland. Understanding financial well-being is crucial to helping people achieve it and this report is an important step in developing this understanding.”
By switching household utilities consumers can avail of great savings which can ease the money pressure and help improve their financial well-being. Currently Irish households can save up to €290 just by switching to a cheaper energy deal alone.
Switch and save up to €359 on your energy bills
It only takes a few minutes to find a cheaper deal and start saving
These savings could make a massive difference to your financial situation with more money to cover everyday essentials or to be put away in case of emergencies. You could also invest these savings for the future or put it towards a holiday or buying something you would otherwise not be able to afford.