Almost 50 per cent of Irish people say they are struggling financially and have no savings to fall back on, according to a survey published today.
The absence of savings is more pronounced among women, with 42 per cent saying they are only able to set aside 5 per cent or less of their income compared to 24 per cent of men in a similar position, the research from LIA, the Life Insurance Association, which specialises in education and development of financial advice and planning professionals.
All told, 43 per cent of those surveyed said they were struggling and lacked any class of financial safety net. An absence of preparedness is again more pronounced among women, with only 11 per cent saying they felt “very prepared” financially compared with 23 per cent of men.
The research also highlights a significant deficit in pension savings, with 31 per cent of those aged between 35 and 54 not contributing to a private pension, rising to 42 per cent among younger adults. Only 42 per cent of those approaching retirement said they were confident about their financial position
In addition to financial insecurity, the research highlights the toll a lack of financial wellbeing is taking, with 81 per cent of respondents reporting it is negatively impacting their mental health.
“Our research shows that too many people are unprepared for the future, leading to unnecessary stress and anxiety,” said Joanne Keane, chief executive of LIA.
She said that professional financial advice “provides clarity and direction, helping people navigate not just retirement planning but also major life milestones – buying a home, funding education or planning a wedding – ensuring they can make informed financial decisions with confidence”.
LIA says it has a new three-year strategic framework designed to tackle these challenges by focusing on long-term solutions and supporting the development of financial literacy and advice.
The strategy focuses on four key pillars: leadership, education, engagement and partnerships. By fostering leadership within the financial community, enhancing educational offerings, engaging members and stakeholders, and building strategic partnerships, LIA says it hopes to drive excellence and innovation in financial services.
A cornerstone of the strategy is an emphasis on financial literacy and wellbeing. LIA is committed to promoting financial literacy through initiatives such as the Smart Money Habits programme, which supports various sectors including athletes and a wide range of sporting bodies.
These initiatives are targeted at empowering individuals to navigate complex financial decisions with confidence, fostering long-term financial security.
