Table of Contents
Overview
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- What you need to know
- Issues covered in this Report
- Definitions
Executive Summary
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- The market
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- Figure 1: Total deposits from private households, IoI, RoI and NI, 2012-22
- Forecast
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- Figure 2: Index of total deposits from private households, actual, estimated, forecast and projected, RoI and NI, 2012-22
- Market factors
- Economic growth and job creation in NI and RoI
- 29% of NI and 22% of RoI consumers well placed to save and invest
- Consumer confidence faring well, but spectre of Brexit having impact
- Little financial return on saving due to low interest rates
- Who's innovating?
- The consumer
- 20% of NI and 17% of RoI consumers have no savings at all
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- Figure 3: Amount that consumers currently have in savings and investments (excluding the value of your main home and any pension savings), NI and RoI, October 2017
- Around two thirds of consumers have a basic savings account
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- Figure 4: Ownership of savings and investments products, RoI and NI, October 2017
- Consumers saving for rainy days, holidays, celebrations and retirement
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- Figure 5: Main reasons for saving by consumers, NI and RoI, October 2017
- Sense that retirement is changing, and preparations not ideal
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- Figure 6: Agreement with statements relating to savings and retirement, NI and RoI, October 2017
- What it means
The Market – What You Need to Know
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- Economic growth and job creation in NI and RoI
- 29% of NI and 22% of RoI consumers well placed to save and invest
- Consumer confidence faring well, but spectre of Brexit having impact
- Little financial return on saving due to low interest rates
Market Size and Forecast
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- Irish consumers' savings total almost €143 billion in 2017
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- Figure 7: Total deposits from private households, IoI, RoI and NI, 2012-22
- Total value of savings to top €163 billion by 2022
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- Figure 8: Index of total deposits from private households, actual, estimated, forecast and projected, RoI and NI, 2012-22
Market Drivers
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- Economic growth continuing in RoI, while unemployment falls
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- Figure 9: Key economic indicators, RoI, actual, estimated and forecast, 2016-18
- Figure 10: Labour market summary, RoI, estimated and forecast, 2016-18
- Brexit uncertainties looming, but NI economy still growing
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- Figure 11: Economic growth, annual % increase, estimated and forecast, NI and UK, 2017-19
- Figure 12: Unemployment rate, NI, estimated and forecast, 2017 and 2018
- Around a quarter of consumers can afford to easily add to savings
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- Figure 13: How consumers rate their own financial health, NI and RoI, November 2017
- Increase over last two years in number of consumers with 'healthy' finances
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- Figure 14: Consumers who rate their own financial health as being 'healthy', NI and RoI, November 2015 and November 2017
- Looming Brexit shadow affecting RoI consumer confidence
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- Figure 15: Consumer sentiment Index Survey results, RoI, October 2016 and October 2017
- Uncertainty taking its toll on NI consumer confidence
- Savings ratio in NI and RoI lagging international norms
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- Figure 16: Personal savings %, EU, eurozone, UK (incl. NI) and RoI, June 2017*
- Low return on savings likely discouraging many would-be savers
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- Figure 17: If consumers are considering applying for a mortgage within the next 12 months, NI and RoI, January 2017
Companies and Brands – What You Need to Know
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- Some savers in UK worse off as commercial banks fail to pass on rise in interest rates
- AIB and KBC cut interest rates on several accounts
- Bank of Ireland becomes first Irish institution to charge for placing cash on deposit
- HSBC trails open API app to help consumers manage money
- Ulster Bank to remove hard credit searches which can damage customer credit rating
Who’s Innovating?
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- The Innovative ISA
- Bitcoin savings accounts
- BSave
- Magnr
Companies and Brands
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- Allied Irish Bank (RoI) / First Trust Bank (NI)
- Key facts
- Savings products
- Recent developments
- Bank of Ireland
- Key facts
- Savings products
- Recent developments
- Danske Bank
- Key facts
- Savings products
- An Post (RoI Only)
- Key facts
- Savings products
- Halifax (NI Only)
- Key facts
- Savings products
- HSBC (NI Only)
- Key facts
- Savings products
- Recent developments
- KBC (RoI Only)
- Key facts
- Savings products
- Recent developments
- Nationwide (NI Only)
- Key facts
- Savings products
- Permanent TSB (RoI Only)
- Key facts
- Savings products
- Santander (NI Only)
- Key facts
- Savings products
- Post Office (NI Only)
- Key facts
- Savings products
- Ulster Bank
- Key facts
- Savings products
- Recent developments
The Consumer – What You Need to Know
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- 20% of NI and 17% of RoI consumers have no savings at all
- Around two thirds of consumers have a basic savings account
- Consumers saving for rainy days, holidays, celebrations and retirement
- Sense that retirement is changing, and preparations not ideal
The Consumer – Value of Savings
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- Around a fifth of all Irish consumers have no savings at all
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- Figure 18: Amount that consumers currently have in savings and investments (excluding the value of your main home and any pension savings), NI and RoI, October 2017
- Women – particularly in NI – more likely to be without savings
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- Figure 19: Consumers who currently have no savings or investments, by gender, NI and RoI, October 2017
- Only one in 10 over-55s are without savings or investments
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- Figure 20: Consumers who currently have no savings or investments, by age, NI and RoI, October 2017
- Employment a significant factor in ability to save
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- Figure 21: Consumers who currently have no savings or investments, by work status, NI and RoI, October 2017
- Social class and household income major factors in saving
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- Figure 22: Consumers who currently have no savings or investments, by social class, NI and RoI, October 2017
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- Figure 23: Consumers who currently have no savings or investments, by gross annual household income, NI and RoI, October 2017
- Fair increase in number of NI consumers with no savings or investments
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- Figure 24: Consumers who currently have no savings or investments, NI and RoI, 2015 and 2017
- Increase in number of NI consumers with low-level savings
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- Figure 25: Amount that consumers currently have in savings and investments (excluding the value of your main home and any pension savings), NI, 2015 and 2017
- RoI consumers' savings holding steady
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- Figure 26: Amount that consumers currently have in savings and investments (excluding the value of your main home and any pension savings), RoI, 2015 and 2017
The Consumer – Ownership of Savings and Investment Products
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- Basic savings account most popular product among all consumers
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- Figure 27: Ownership of savings and investments products, RoI and NI, October 2017
- Savings accounts holding across-the-board appeal for Irish consumers
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- Figure 28: Ownership of savings accounts (excluding post office accounts), by gender, age and social class, RoI and NI, October 2017
- Company pensions owned by wealthy, older men in employment
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- Figure 29: Ownership of company pension, by gender and age, RoI and NI, October 2017
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- Figure 30: Ownership of company pension, by work status, RoI and NI, October 2017
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- Figure 31: Ownership of company pension, by social class and gross annual household income, RoI and NI, October 2017
- Self-employed, men, over-55s, high incomes opting for personal pensions
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- Figure 32: Ownership of personal pension, by gender and age, RoI and NI, October 2017
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- Figure 33: Ownership of personal pension, by social class and gross annual household income, RoI and NI, October 2017
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- Figure 34: Ownership of personal pension, by work status, RoI and NI, October 2017
- Firm preference for cash over stocks and shares when buying an ISA
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- Figure 35: Ownership of ISAs, cash and stocks & shares, by gender, age and social class, NI, October 2017
- Men, over-55s, self-employed, wealthy putting cash into equities
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- Figure 36: Ownership of individual company shares, by gender and age, RoI and NI, October 2017
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- Figure 37: Ownership of individual company shares, by work status, RoI and NI, October 2017
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- Figure 38: Ownership of individual company shares, by social class and gross annual household income, RoI and NI, October 2017
The Consumer – Reasons for Saving
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- Majority of savers are saving out of precaution
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- Figure 39: Main reasons for saving by consumers, NI and RoI, October 2017
- Appeal of 'rainy day fund' extends across all consumers
- Self-employed consumers especially inclined towards precautionary saving
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- Figure 40: Consumers who are saving for a rainy day, by work status, NI and RoI, October 2017
- Women more likely to be saving to pay for a holiday
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- Figure 41: Consumers who are saving to pay for a holiday, by gender and age, NI and RoI, October 2017
- Young C2DEFs and women saving for celebrations and presents
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- Figure 42: Consumers who are saving to pay for Christmas or birthday presents/celebrations, by gender, age and social class, NI and RoI, October 2017
- Self-employed, in particular, saving for retirement
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- Figure 43: Consumers who are saving to prepare for retirement, by gender, work status and social class, NI and RoI, October 2017
- Almost a quarter of consumers saving for a home improvement…
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- Figure 44: Consumers who are saving to pay for home improvements (eg extension, new kitchen etc), by gender and age, NI and RoI, October 2017
- …while many of these same consumers are saving for a large purchase
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- Figure 45: Consumers who are saving to pay for a large purchase, by gender and age, NI and RoI, October 2017
- Saving for education or medical expenses far more common in RoI
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- Figure 46: Consumers who are saving for medical expenses, educational expenses or qualifications/training, NI and RoI, October 2017
- Consumers aged 18-24 with heavy internet use saving to purchase cars
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- Figure 47: Consumers who are saving for a new car/vehicle, by age and daily internet use, NI and RoI, October 2017
The Consumer – Agreement with Statements
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- Concern and wariness dominate consumers' attitudes towards retirement
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- Figure 48: Agreement with statements relating to savings and retirement, NI and RoI, October 2017
- Sense among consumers that the nature of retirement is changing
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- Figure 49: Agreement with statements relating to changes in retirement, NI and RoI, October 2017
- State pension no longer determines retirement age, but still matters
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- Figure 50: Agreement with statements relating to state pension and state retirement age, NI and RoI, October 2017
- Question marks over consumers' level of preparedness for retirement
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- Figure 51: Agreement with statements relating to preparedness for retirement, NI and RoI, October 2017
- Uncertainty and lack of confidence when it comes to retirement planning
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- Figure 52: Agreement with statements relating to savings and retirement, NI and RoI, October 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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