New Central Statistics Office figures show that households saved 19.9%, or almost €1 in €5, of their disposable income in the second quarter of this year.
This was above the 18.7% average since the start of 2023 and marked an increase on the 19.1% seasonally adjusted household saving rate in the first quarter of this year.
The CSO said that saving can add to a household’s overall wealth in the form of buying new homes, growing bank deposits, pension savings and paying off debt.
Today’s figures show that household disposable incomes increased more than household consumption in the second quarter compared to the first, leading to the higher saving rate.
Household disposable incomes rose by 3%, while household consumption was up 2.1%.
The CSO said today’s results are preliminary and are subject to revision after the publication of the Institutional Sector Accounts for the second quarter of this year in the coming weeks.
Sarah McGurrin, Head of Employee Benefits at wealth advisors NFP Ireland, said today’s CSO figures were encouraging as they show that Irish households have retained a relatively healthy savings cushion despite inflation and spending pressures.
“That said, it could only be a matter of time before the ongoing high living costs faced by Irish families take a toll on their ability to save. High living costs have reduced the purchasing power of many Irish households and are eating into disposable income, meaning many Irish families could have less opportunities to save their money in the future,” she said.
“Inflation is above average for many basic day-to-day living costs, such as education, housing, transport, fuel, and key grocery staples. Recent electricity and private health insurance price hikes – combined with yesterday’s ECB rate increase, the second in the space of three months – means that consumers will continue to grapple with inflation for some time yet,” she added.