- A Third ‘Just Getting By’ on Current Income
- Financial Struggles Hit Middle-Aged Workers Hardest: Almost 3 in 10 Adults Aged 45-54 Say They Are Struggling or in Crisis
Almost one in ten people (9pc) in Ireland would describe themselves as being in ‘financial crisis’, with those aged 45-54 most likely to be struggling to stay afloat on their current income (13pc). A further 1 in 3 people around the country (33pc) are merely ‘getting by’ on their income which they describe as ‘covering only essential expenses but little else’.
A new survey commissioned by Royal London Ireland, a leading provider of life insurance and pensions in Ireland, carried out by iReach with 1,000 adults nationwide, highlights the stark reality of financial well-being across Ireland, and also sheds some light on the number of people who are at either end of the financial spectrum. When asked, ‘How well does your current income support your lifestyle and financial goals’, almost 1 in 10 said they were ‘thriving,’ with more than double the number of men (13pc) compared to women (5pc) falling into this category and reporting that their income ‘fully meets my needs and helps me achieve my goals’.
Commenting on the findings, Barry McCutcheon, Proposition Lead at Royal London Ireland said,
“These results reveal the real financial pressures people across Ireland are experiencing today. While it is encouraging that 45pc of the population feels financially comfortable, it is concerning that such a vast amount of people are struggling to make ends meet to varying degrees.”
“Our survey underscores the challenges facing middle-aged groups in particular, who may be juggling mortgages, childcare, or other financial responsibilities.”
Key highlights from the Royal London Ireland survey:
“How well does your current income support your lifestyle and financial goals?”
- 33pc of people are ‘getting by’ i.e. they have enough for the essentials but not much else. That number rises to almost 4 in 10 women (compared to 3 in 10 men).
- Younger adults (18-24) are the most likely to describe themselves as ‘thriving’ at 19pc – almost 1 in 5, possibly due to fewer financial commitments such as mortgages or dependents, while just 5pc of those aged 45-54 feel the same way.
- Financial well-being varies by location. 17pc of Dubliners say they are thriving, compared to only 4pc in Connacht/Ulster. People in Leinster (excluding Dublin) are the most likely to be struggling or in crisis (30pc).
Separately, in another survey undertaken by iReach for Royal London Ireland with 830 respondents that asked: “How long do you think your employer would continue to pay your wages if you became sick and couldn’t work?”
- More than 4 in 10 people either don’t know how long their employer would continue paying them if they became too sick to work, or believe they wouldn’t be paid at all.
- While 16pc of male workers say their employer wouldn’t pay them at all if they couldn’t work due to illness, a figure that rises to 25pc among women.
- Among those who are currently just getting by, struggling, or in crisis (55pc), a sudden loss of income due to illness could have a devastating financial impact.
Mr. McCutcheon added,
“On one hand, we have 55pc of respondents reporting that, even with their current income, they say they are just getting by, struggling, or in crisis. On the other hand, 43pc either don’t know whether their employer would pay them when sick or are certain they wouldn’t. This highlights the severe financial impact that a sudden loss of income could have on many households.”
“These statistics are particularly concerning when we consider that over half the population is already in a precarious financial situation. Without an employer safety net, the risk of income loss due to illness becomes an even bigger issue.”
“A Financial Broker can help people get an understanding of the level of financial protection they might need and recommend suitable products like income protection which can replace up to 75% of a person’s lost earnings if they are unable to work due to any illness or injury. Talking to a Financial Broker can be really useful when you’re looking for the best deals on life, mortgage or health insurance. They do the legwork for you, making it easier to find competitive rates and options that suit your needs.”
