Almost four in five adults in Ireland are interested in investing in the Government’s planned Savings and Investment Account, according to research from Banking & Payments Federation Ireland.
The survey found that 79 percent of adults expressed an interest in the proposed State-backed investment scheme, which is expected to be outlined by Tánaiste and Minister for Finance Simon Harris in the October Budget.
The account is expected to begin operating next year and could offer favourable tax treatment on savings and investments. The Government hopes the scheme will encourage some of the approximately €170 billion currently held on deposit by Irish savers to move into investments.
Awareness of the proposed account remains lower among younger people. Overall, 48 percent of adults said they had heard about the scheme, but that figure fell to 25 percent among people aged between 18 and 34.
Among those interested in opening an account, savings were the main expected source of funding. Thirty percent said they would use money from existing savings, while another 30 percent planned to use savings they accumulate in the future.
The survey also examined which features would make the account attractive. Ease of opening was considered the most important factor, cited by 83 percent of respondents. Tax incentives followed at 78 percent, while 77 percent said flexible withdrawals were important.
The research found that Irish people have a range of reasons for investing. Retirement planning was the leading long-term objective, cited by 42 percent of respondents. Another 34 percent identified building a rainy-day fund as an important goal.
However, financial limitations could prevent many people from participating. Among those who said they were unlikely to invest through the scheme, 61 percent cited affordability or not having enough money.
Fear of losing money was identified as a barrier by 49 percent, while 48 percent said they lacked sufficient knowledge about investment.
BPFI chief executive Brian Hayes said the survey demonstrated strong potential interest in the proposed account, with 41 percent of adults describing themselves as very or extremely interested and another 38 percent saying they were somewhat interested.
He said participation would depend on the scheme being simple to understand, easy to access and supported by clear incentives.
Hayes also said tax benefits would be important and that savers appeared to favour straightforward tax-free incentives over arrangements that defer taxation.
BPFI estimates that between €2 billion and €7 billion could be invested in the account during its first year.
The Savings and Investments Survey was carried out by Amárach Research in June among a nationally representative sample of 1,000 people.
The findings suggest the proposed account could attract significant interest, but its success may depend on whether the Government can make investment accessible to households that currently have limited spare income or confidence in financial markets.
