Home News Core Research Shows Pandemic Induced Pressure on People’s Personal Finances

Core Research Shows Pandemic Induced Pressure on People’s Personal Finances

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

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