The vast majority of adults in Ireland (79%) are interested in investing in the Government’s new planned Savings and Investment Account, research from the Banking & Payments Federation Ireland (BPFI) suggests.
Tánaiste and Finance Minister Simon Harris is expected to announce details of the State-backed scheme in October’s Budget, which is due to be up and running next year.
It will likely include a single flat rate of tax on any savings invested, with the Government hoping the planned favourable tax terms will entice savers who currently have around €170 billion on deposit to invest.
According to the BPFI survey, almost half of adults (48%) are aware of the scheme, although this drops to 25% of younger adults aged 18-34.
Of those who expressed an interest in the SIA, most said they expected to fund their account from savings; 30% from existing savings and another 30% said they would do so using planned future savings.
The features of the new scheme that were rated most important were ease of opening (83%), tax incentives (78%), and flexible withdrawals (77%).
The BPFI said its research also shows Irish investors are driven by a mix of long-term financial security goals, such as retirement (42%), as well as shorter-term objectives such as rainy-day funds (34%).
However, it also found that the main barriers cited by those not planning to invest in the scheme were not having enough money or affordability (61%), fear of losing money (49%), and lack of knowledge (48%).
BPFI Chief Executive Brian Hayes said the findings “show strong interest in the proposed Government SIA, with almost four in five adults saying they would be interested in opening one”.
“While 41% report that they are very or extremely interested, a further 38% say they are somewhat interested, representing a sizeable group that could be encouraged to participate if the scheme is simple, well-communicated and supported by clear incentives,” he said.
He added that “for an SIA to work, it must be simple to open, easy to understand and flexible enough to meet people’s needs. Tax incentives will also be important, with stronger support for simple tax-free incentives over deferred taxation”.
The BPFI – which represents the banking, payments, and fintech sector in Ireland – estimates that between €2 billion and €7 billion could be invested in the scheme in its first year.
The BPFI Savings and Investments Survey was conducted by Amárach Research in June among a nationally representative sample of 1,000 people.
