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One in three people are struggling financially according to CCPC report

David Power, 9 Jul

One in three people says that they are “just getting by” when it comes

to their finances, according to a new financial wellbeing study.

With 33% of all respondents to a Competition and Consumer Protection

Commission (CCPC) financial wellbeing survey reporting that they were

“just getting by financially” - it is significantly worse among people

with only a primary education or less, as this figure rises to over

50%.

One in 8 people say that can only cover their costs for a month or less

in the event of income shock.

Most people believe they can sustain their living expenses for three

months or more in the case of a financial shock such as the loss of

income, but 1 in 8 say they would just be able to cover their costs for

a month or less. Lone parents and people in shared homes are among the

least likely to have significant financial buffers in place.

The percentage of households saving is high overall (86%), with most

using deposit or savings accounts. However, men are more likely to

engage in higher-risk saving such as the purchase of stocks and shares

or investing in crypto-assets.

Kevin O’Brien, member of the CCPC, said: “This first report in our

Financial Wellbeing series has some very positive findings. It shows a

population making sound financial decisions, saving, budgeting, and

drawing on information from a range of sources before choosing a

mortgage or loan.

"There are also areas of deep concern. One in three people feel they

are only just getting by financially. One in seven feel they have too

much debt. There are significant differences between age groups, with

those over 60 showing greater financial resilience than those under 30,

while lone parents and people with lower levels of formal education

have the lowest levels of financial wellbeing in Ireland.”

Financial Wellbeing in Ireland: Financial literacy and inclusion in

2023 is the first in a series of reports which will explore a range of

aspects of financial wellbeing in Ireland.

The data gathered will support the development of the first national

financial literacy strategy, led by the Department of Finance, to be

formally announced by Minister for Finance Michael McGrath at the CCPC

report launch on Thursday. The CCPC will play a central role in the

development of the strategy.

Kevin O’Brien, Member of the Competition and Consumer Protection

Commission, said: “This research has resulted in a rich dataset which

will inform further research and policy for years to come, providing a

strong evidence base for work on financial wellbeing, education and

inclusion. It will be an invaluable tool in developing Ireland’s first

national financial literacy strategy, and we welcome the Minister’s

commitment to improving financial literacy across generations.”

This report was submitted to the Competition and Consumer Protection

Commission (CCPC) by Indecon International Consultants and is based on

a national survey undertaken by Ipsos MRBI using an Organisation for

Economic Co-operation and Development (OECD) toolkit. The Irish data

has been submitted by the CCPC to the OECD for overall analysis with

other countries, to be published later this year.

The Competition and Consumer Protection Commission (CCPC) has a

statutory role in relation to financial information and the development

of financial education and capability in Ireland. The CCPC carries out

this role by conducting public awareness campaigns on personal finance

issues, supporting the development of financial education programmes

for all ages, and providing free, independent financial comparison

tools and personal finance information on our website.