Buying a new car is the top financial goal for 24% of consumers in the next five years, highest amongst households with children at 30%, according to new research from Aviva Life & Pensions Ireland DAC (Aviva ).
Other financial priorities include starting to save amongst 21% of survey respondents, increasing pensions savings (17% ), paying off the mortgage (13% ), buying their first home (11% ) and saving for children’s education at 9%. Some 17% of those surveyed claimed they are simply trying to get by week to week and cannot afford to think long-term, with 6% saying that they have never given it any thought.
The research, conducted by iReach Insights on behalf of Aviva polled 1,000 people nationwide, with a 50/50 split of men and women aged between 25-65. Other financial goals in the next five years included starting a pension (8% ), buying a holiday home abroad (5% ), downsizing to a smaller home (5% ), and taking out private health insurance (5% ). Further down the list of priorities include buying a second investment property (4% ), buying a bigger home for an expanding family (4% ), taking out income protection to protect their income (3% ) and buying a holiday home in Ireland at 2%.
The Aviva research showed that:
Those hoping to buy their first home in the next five years is highest amongst single men (17% ) and those aged 25-34 at 27%
5% are seeking to buy a holiday home abroad in the next five years – 7% of men and 3% of women
26% of single women (single men: 23% ) claim that they are just trying to get through week by week and cannot financially afford to think long term
Those planning to pay off their mortgage in the next five years is highest amongst households with children at 17% and those aged 45-54 (19% )
9% of those aged 55-65 are hoping to downsize to a smaller property in the next five years
Starting pension saving in the next five years is highest amongst those aged 25-34 (12% ) and higher amongst single women at 10% (single men: 5% )
“As can be seen from the research findings, most consumers surveyed have some financial priorities that they hope to achieve in the next five years. Where possible, it is always good to set targets against which we can focus on saving our hard-earned cash to achieve what we want for ourselves and our families. These are medium terms goals, with many focused on improving our lifestyles, whilst beginning to look to secure our financial futures.
“Consumers who are saving in the medium to long term should expect that their savings will continue to grow, particularly as inflation continues to run at just under 5%. Given that financial institutions have been so slow to pass on interest to deposit customers, despite the European Central Bank (ECB ) having increased rates nine times since July 2022, consumers should be actively exploring other options available in the market to ensure that they are getting a return. The ECB is currently paying 3.75% to financial institutions for deposits – most of which is not being passed on to hard-pressed savers.
“Those leaving their savings in demand deposit accounts are faring ever worse as they are unlikely to be earning more than 0.05%, with most not getting any return at all. Consumers with medium to long term savings targets should speak with a financial advisor to better understand what their options are," Stephen Rice, Aviva, commenting on the survey, said.
