You’ll find our regular global macro summary below, but this week we want to return to a popular domestic topic: Household Savings. It can be hard to quantify, but according to the latest CBI Data €7.5bn was saved by Irish households in the last quarter of 2022, leaving over €130bn on deposit from Irish households, with the savings rate continuing to sit above 20%. Now, the headlines tell us little about the breakdown across the population, and it does include some items such as pension contributions, but it consistently represents an opportunity for Financial Brokers.
This fact has been accentuated by the fact that inflation remains ‘sticky’ and therefore the erosion of wealth due to reduced purchasing power over the next decade will be far in excess of anything we’ve seen this century. We hope to build out this concept on the Zurich Blog in the coming weeks. As stated in the opening gambit it can be hard to quantify the money households have on deposit in Ireland. So, what does €130bn look like? Using €50 notes (which incidentally represent just under half of all banknotes printed by the CBI last year) you would have roughly €1 billion in a standard 40ft shipping container…
As always, if you wish to discuss anything in further detail, please do get in touch.