An automated savings habit will minimise temptation. Photo: Getty
Irish households are saving €1 out of every €8 they take home as income, latest Central Statistics Office (CSO) figures show.
The savings rate is around half what it was at the peak of Covid but still high by historic standards.
The household savings rate in the second quarter of the year was 12.5pc – which refers to the share of income not spent each month.
This rate was down from 13.2pc in the first quarter of 2025, but close to the average of 12.7pc since the start of 2023, the CSO said.
Irish household consumption – the share of income that gets spent each month – rose 2pc and incomes rose 1.2pc in the three months to the end of June , with the faster rise in consumption leading to the lower a saving rate, the CSO said.
The trend of putting away significant amounts of extra income began during the pandemic and while the rate has dropped there has been little sign the savings habit has been lost, or of households drawing down those savings.
The savings peak which was reached in the first quarter of 2021 – when much of the economy was locked down, when it was 26.3pc has gradually came down but has been plateauing since 2023 at around the 12pc to 13pc mark.
Households are now holding significant savings, on average, according to Colum Carroll a financial planner with investment firm Castle Capital.
“Despite the slight decrease in household saving reported today, there is no doubt that households are still holding very large cash piles in deposits, creating obvious cash drag versus long-term goals.
“Total disposable income is up slightly, yet much of this continues to flow into cash savings rather than investments.”
In Q2 2025, before adjusting for seasonality or inflation, households saved €6.8bn, with investments in dwellings or improvements reaching €5.5bn, the CSO said.