While Irish banks recorded record customer deposits during lockdown in 2020 and into the first quarter of 2021, 36% of people say their household income decreased since the beginning of the COVID-19 pandemic, according to new research into people’s personal finances which was carried out by Core.
The research shows that 49% of people said their household income had remained the same during the pandemic with just 15% saying it had increased.
The research also shows that over 1m workers were impacted by COVID-19 but as a result of dual-income households and state supports, most households were in a position to maintain their level of household income they had in March 2020.
Workers who have been impacted by COVID-19 are most likely to say the amount they save every month has decreased. Some 51% of this group say they save less than before COVID-19. In contrast, of those who’s employment has not been impacted, 53% say the amount they save every month has remained the same and a further 36% say the amount they save has increased.
The perceived average amount people save every month is €222, and notably those impacted by COVID-19 claim to save a little more (€251) compared to workers who were not impacted (€218).
Although 33% of people are saving as a financial safety net, the Core research shows that 26% are planning a holiday with their savings and 22% ar saving for home improvements. For workers who’s income was impacted by COVID-19, 28% are saving for a house while 17% are saving for a car.
Of those who were impacted by COVID-19, 48% of people’s working hours were reduced by the pandemic and 28% of workers’ salaries were reduced while 8% are no longer in paid employment due to the Covid-19 pandemic.
“It is clear that Covid-19 pandemic has impacted our lives in a variety of ways. What stands out in our Pandemic Personal Finance report is Irish people are still intent on planning for the future despite a very changeable period,” says Finian Murphy, marketing director, Core.
“Saving behaviour for younger people and families affected by the pandemic may be long-lasting with an initial focus on housing security, but subsequently building in financial security as legacy of 2008 recession and COVID-19 informs their approach to personal finances. For those who were not impacted by the pandemic, it is also clear to us that financial security remains important.”
To download a full copy of the research click HERE