Mayo consumers are saving more than ever and are now looking for new ways to shore up their money for the long-term, according to Tony Raftery, manager of Acorn Life in Mayo.
“People are saving more than ever, with recent surveys indicating that adults are now saving an average of nearly €4,000 each year and with over 66,000 adults over 24 years of age in Mayo, that adds up to more than €220 million in 2010 alone,” said Mr Raftery.
He added that many people have made a concerted effort to save since the start of the recession, and Acorn Life is now expecting a significant portion of these funds to be switched into guaranteed pension funds in advance of the expected budget cut in pension tax relief, tipped to tall from the current maximum to a possible 33 per cent or even down to 20 per cent.
“With almost one third of people saving regularly and the balance saving as and when they can, most appear to be managing their money far better than prior to the recession,” Mr Raftery added.
“As a result of this concentrated savings effort over the past two years, many have built up a reasonable cash nest egg and are now considering how to best use some of these funds to secure their long-term future.
“Many people suffered considerable losses in their pension funds in 2008, with an average fall in values of 33 per cent for Irish pension funds. For this reason we anticipate that many pension savers will now seek capital guarantees to ensure they hang on to their money going forward.”