Rise in cost of living increases concerns

Unsurprisingly, 77% of people are more interested in their finances since the onset of the pandemic, with women (80%) scoring higher in this area than men (73%) for the first time. However people’s financial concerns continue to be a pressing issue, with 91% of respondents worried about their financial health due to the rising cost of living and inflationary pressures eroding the value of their savings - concern levels are higher amongst women (63%) than men (50%).

A recent Bank of Ireland survey shows that 82% of people had savings put aside, but only 16% of those had an investment account with the potential to grow their money in the current low interest rate environment. 57% of people held their money in a savings account, 47% in a current account and 12% in cash, but all these options are earning no interest and are losing value with the rising cost of living.

18% of those surveyed had no savings at all, while 78% of people claimed to be concerned about earning little or no interest on their savings.

The survey indicates people want to make their money ‘work harder’, with tried and tested savings methods proving ineffective as the cost of living rises ever higher and interest rates remain low. A fear of losing money (66%) is still the biggest investment barrier. However, other obstacles include a lack of investment knowledge (38%); feelings of not having enough money to invest (38%) and being afraid of having money tied up for a long time (35%).

Bank of Ireland has launched the ‘Invested Webinar Series,’ designed to help people learn more about investing and show them how to achieve growth on the portion of their savings they can afford to put away for the longer term. The first webinar begins on 27 April.