More than four in ten would use a tax-efficient investment account to support retirement savings

More than four in ten (42%) adults in Ireland would use a simple tax-efficient investment account to support their retirement savings.

Over one in five (22%) would use such an account for long-term wealth building, while close to one in seven (15%) would use it to save for their children’s future, according to the latest research conducted by Royal London Ireland, one of Ireland’s leading life insurance and pensions companies.

The Government is expected to announce details in the next Budget of a new Personal Investment Account (PIA) aimed at encouraging more people in Ireland to start investing. The move is part of broader efforts to encourage Irish households to make better long-term use of money currently sitting in low-interest deposit accounts.

Key Findings

• Nearly one in ten (9%) said they would use the money to help cover medical costs for themselves or a loved one, rising to 18% amongst those over 55.
• Just 4% would use the money to fund a trip of a lifetime.
• One quarter (25%) of adults under 35 would use the account to save for a house deposit, compared to 5% amongst those aged 35 and 44.
• Adults aged between 25 and 44 were most likely to say they would use the account to support their children’s future, with almost one in four (23%) saying this, compared to fewer than one in ten (8%) of those aged 55 to 64.
• Almost six in ten (58%) of those aged 45 to 64 said they would use the account to support their retirement savings, compared to 23% of those aged 25 to 34.

Noel Freeley, CEO of Royal London Ireland, commented on the findings:

“It is understandable that retirement is top of mind for most people when thinking of likely uses for a Personal Investment Account. Especially amongst those over 45, given people naturally become more focused on their long-term financial security as they move closer to retirement age. This highlights the value of impartial financial advice, as a pension may be a better option for some people due to the tax reliefs available, while for others a PIA may offer greater flexibility when planning for retirement.

“The findings of our survey also point to clear shifts in priorities across life stages. Adults aged 25 to 44 were the most likely to say they would use the account to support their children’s future, which likely reflects the stage many are at in raising families and planning for costs such as education. This then reduces among older age groups, where children are more likely to have reached adulthood and those milestones are already behind them.

“A similar pattern emerges when it comes to future medical costs. Younger adults are far less likely to think about using money for this purpose, while concern around healthcare costs increases steadily with age. For many older people, these costs are more immediate or visible, whether for themselves or for loved ones.

“Notably, interest in long-term wealth building remains relatively consistent across all age groups, suggesting a broad recognition of the importance of setting money aside in a way that can deliver growth over time.”

Additional Findings

• Men were more than twice as likely as women to say they would use the account for a house deposit (13% versus 5%).
• Those living outside Dublin in Leinster were most likely to say they would use the account for long-term wealth building (25%), followed by Dubliners (23%).

Expected Monthly Contributions

• Full-time workers said they would contribute an average of almost €700 per month into the account, while retired respondents said they would contribute an average of €658.
• Part-time workers said they would contribute an average of €236 per month, while those not currently working but seeking employment indicated an average monthly contribution of €110.
• Across all employment categories, the most commonly selected monthly contribution level was an amount up to €250.

Mr Freeley added:

“What stands out from these findings is that, across all employment groups, the most commonly selected monthly contribution level was between €100 and €250. While some individuals indicated they could invest larger amounts, the dominant pattern is one of modest, regular contributions.

“That is significant because it underlines the broad appeal and accessibility of this type of simple, tax-efficient investment account. The projected contribution levels show this is not an account perceived as only being for higher earners, but one that is likely to see uptake across all income categories. It reflects a mindset shift, where people view long-term investing as something that can be built steadily over time, at levels that are realistic and manageable alongside everyday financial commitments.”

ENDS

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