Have you got a pension planned for 2015?
Rob O’Neill, Senior Financial Advisor
A recent survey commissioned by Bank of Ireland and carried out by the South Western Group shows that 73% of customers plan to save the same (42%) or more (31%) in 2015 than they saved in 2014. Customers aged 18 – 34 are the most optimistic about how much they will save, and 52% believe they will be able to save more compared with 23% of 35-49 year olds. Of those surveyed the majority are regular savers with 71% saving on a monthly basis. 32% of respondents save less than €100 per month, 35% save between €100 and €300 and 14% save between €300 and €500 per month.
A high proportion of regular savers (75%) manage to stick to their savings plan. 66% of customers aged 35-49 manage to stick to their savings plans, compared with 77% of customers aged 18-34 and 82% of customers aged 50+ years old. 46% of savers use automated/online transactions to transfer money to their savings accounts with 40% having a standing order set up and 6% transferring their money online. A further 40% of those surveyed stated they lodge cash to their savings accounts.
The vast majority of customers surveyed (89%) believe that the Irish economic situation will either improve (52%) or remain unchanged (37%) and a promising 84% of customers believe their own personal spending power will either improve (30%) or remain unchanged (54%) in 2015. The main reasons given by customers who believe their own personal circumstances will improve include starting a new/ better job (22%), better work opportunities (19%), managing their money better (11%) and expecting salary increase (10%).
What many people don’t realise is that a pension is the most tax efficient form of saving helping you to reduce a hefty tax bill, as well as providing financially for your retirement.