Smart savings for the future

New research carried out by Zurich highlights the benefits of financial advisors and the advantages of seeking expert advice when it comes to savings and investment options.

Zurich Life carried out research to gain insights into peoples’ attitudes towards financial advisors when it comes to savings. The research also revealed the benefits of financial advisors in general with 78% of respondents stating the positive impact that they had when engaging with an expert advice and that they would recommend a financial advisor to family and friends*.

The research showed that 14% of adults in Ireland stated they have a financial advisor. Of those that have a financial advisor, 42% said the reason they have one is to help plan and save for their retirement. Over a third of those who do not have a financial advisor are likely to engage with one in the future.

Regular savings

In Ireland, 69% of adults save regularly and 71% of respondents have some form of savings and investments. Two thirds of respondents save over €2,000 per annum and the average amount saved by adults in Ireland each year is €4,291.

Savings goals

Over a quarter of respondents to Zurich’s research said they are saving or investing for their pension. 22% of adults are saving for a new house, while 19% are saving because they want to start a new business. Education is another motivation for saving with 17% saving for their children’s school and college costs and 14% saving for their own educational needs.

Other reasons people are saving include: for a new car (18%), wedding (5%) and home and car repairs (5%).

Return on investment

When it comes to return on investment almost a third (32%) of adults receive a return of 0% - 0.25% on their savings. The average interest rate savers receive is a rate of 0.35%. Almost half of respondents have a medium level of understanding of financial matters with 35% having little or no understanding of financial matters.

Whether you're saving for a new home, your dream wedding, college fees or simply for a rainy day, a sensible savings plan can make all the difference. There are lots of different savings and investment options so getting advice from a financial advisor can help you decide what the best savings product are for your needs.

*Source: Zurich Financial Advisors Research Study, July 2020