Research Conducted by iReach Market Research
FIRST INDEX SHOWS 13% OF IRISH HOMES CANNOT MAKE ENDS MEET
83% of respondents who have little or no income left over after paying for essentials worry about how they will cope if unforeseen expenses arise
36% of those with little or no income left over each month do not see a future for themselves or their family in this country
45% of respondents state that they are unlikely to have money to save in the current economic climate.
(April 2011) The Irish League of Credit Unions has today announced the launch of a new disposable income tracker index. The ‘What’s Left’ Index will record how much disposable income Irish people have this year, where they are spending their money and the financial hardships they are facing. The 2011 results will be used as baseline measurements for the ‘What’s Left’ trackers over the coming years. The results of the 2011 trackers will be announced in April, July, October and December.
Speaking at the launch, ILCU CEO Kieron Brennan said: “It has become more and more apparent that many Irish families are seriously struggling in what are very difficult financial times. We have just seen an ECB rate increase last week which is likely to push families and individuals further into mortgage difficulties and arrears. This combined with increasing fuel costs, the introduction of the universal social charge and cuts in social welfare means that 2011 will be one of the most difficult years for the Irish population in terms of money management.
He continued: The aim of the ILCU ‘What’s Left’ tracker is to highlight the areas in which Irish people are experiencing financial difficulty, for example; the amount of disposable income left each month after essential bills are paid, capacity to save money each month, what families consider essential spending and to what extent people worry about their finances for the year ahead.
Highlights from the ‘What’s Left’ tracker was undertaken by iREACH Market Research on behalf of the Irish League of Credit Unions
The highlights from the first (April 2011) ILCU ‘What’s Left’ tracker found that, as expected, mortgage and rent are seen as the largest / most important bills for respondents (72%). This is followed by utilities (55%) and groceries (51%). Transport / car (26%), loan repayments (25%), credit cards (25%) and health insurance (24%) were all ranked at a similar level of importance.
Of all respondents: 21% of have between 1 – 5% of their income left over after they have paid essential bills. 6% state their income doesn’t even cover their essential bills while a further 7% state that they have nothing left after they have paid their essential bills to live on.
27% of respondents have just enough (10-20%) of their disposable income left over after they have paid for all their essentials while a further 20% have more than 20% left over which is enough to enjoy themselves.
Of those that work: 19% of respondents have between 6-10% of their income left over after they have paid for their essentials. It is estimated using CSO data (Q4 2010) that this cohort only have on average of €70.00 left over each month after paying for all their essential bills.
A further 20% of those who work state that they have a small amount of between 6% and 10% or an average of €200 of their income left
Changes from this time last year: 69% of respondents have found that their disposable income has decreased from this time last year reflecting changes to tax charges and increasing utility bills and transport costs. Just 12% believe that what they have left over after they have paid for essentials has increased since this time last year while 19% believe it has stayed the same.
Of those who have less than 5% of income left each month: 83% of respondents who worry about how they will cope if unforeseen expenses arise.
74% who have little or no income left after pay for essential bills fear that they will not be able to cope if there are any further changes made to social welfare / income tax
36% do not see a future for themselves or their family in this country
30% believe that with any further changes to the minimum wage they would be better off not working
Saving: 45% of respondents state that they are unlikely to have money to save in the current economic climate
52% of those with dependent children are unlikely to have money to save as opposed to 42% of those without children
Notes to Editor
About the Tracker Survey
The survey was conducted by Market Research Company iReach during the period of 24th March to 1st April using the iReach Consumer Decisions Research Panel which delivered 1,000 responses from adults in Ireland aged 18+ to 65+ and is nationally representative by Age, Region, Gender and Social Class. The results of the 2011 trackers will be announced in April, July, October and December
Estimates are based on CSO Earnings and Labour Costs Q4 2010 Preliminary Estimates which places average weekly earnings at €699.46
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