However, a new nationwide survey suggests that many adults may be starting 2026 without the financial knowledge they need.
A new nationwide survey has offered a revealing snapshot of Ireland’s financial literacy: 65% achieved a passing grade, but only 3% managed a perfect score.
Commissioned by NFP Ireland, a professional services firm specialising in insurance, employee benefits, wealth management, and risk consulting, the nationwide survey quizzed 1,000 adults on their understanding of core financial topics, including pensions, tax relief, insurance, and the State Pension. While the majority demonstrated a basic grasp of these areas, the experts at NFP say the findings highlight clear knowledge gaps, particularly among younger adults, and underline the need for greater awareness and education.
Sarah McGurrin, Head of Employee Benefits at NFP Ireland, spoke of the findings,
“This isn’t school – people hadn’t prepared for this survey! But the research is important in understanding where people are starting from in terms of financial literacy, and for taking action to ensure they have the tools and knowledge needed to make informed financial decisions, no matter their age or stage of life”.
Few at the Top of the Class
While just under two-thirds (65%) of adults obtained a “pass” in the nine-question quiz, very few stood out at the top end. Just one in five men (22%) and one in eight women (13%) achieved an A or B grade.
35% of all respondents got fewer than half the questions right.
Women were slightly more likely to pass overall (66% vs 63%), while men were more likely to achieve top grades, with 10% scoring an A, compared to 6% of women.
McGurrin continued,
“Most people answered a decent chunk of the questions correctly. However, the survey also tells us that financial confidence and clarity still feels out of reach for many, especially when it comes to products like pensions and protection. This is something that shouldn’t be ignored – knowledge is power, and the lack of it can have serious consequences for people’s financial wellbeing”.
Age and Wisdom
The NFP survey shows clearly that financial knowledge increases with age, likely as people encounter decisions around mortgages, pensions, and insurance firsthand. However, this trend also highlights a missed opportunity: many younger people entering the workforce lack the information they need at a critical stage.
- 68% of 18–24-year-olds failed the quiz
- None in that age group achieved an A grade
- In contrast, only 25% of over-55s failed, and almost one in ten over-45s (9%) scored top marks
“Financial understanding shouldn’t be something we only gain through experience,” McGurrin added.
“Younger adults are making big choices too – from setting up pensions and managing loans to taking on one of the biggest financial contracts they’ll ever sign – a mortgage. And too many are doing so without a solid grounding. That’s something we can and should change”.
Munster Residents – Top of the Class
Munster residents emerged as the most financially literate, with a 68% pass rate – the highest of any region. But no part of the country was immune to uncertainty, particularly around more technical areas such as insurance rules and pension thresholds.
The “Exam”
The survey included nine questions on practical, real-world financial topics. While some concepts were well understood, others caused confusion.
Examples include:
- Permanent Health Insurance (PHI):
57% correctly said it pays part of your salary if you can’t work due to illness or injury.
But 43% gave incorrect answers – including one in five (20%) who believed it was a type of life insurance.
- Death in Service Benefit:
65% knew it pays out when an employee dies while employed and covered by the scheme.
However, almost one in five (17%) believed it only applies if the death occurs at work.
- ‘Four Times Salary’ Rule in Group Life Insurance:
Just 40% understood that it defines the maximum tax-free lump sum payable on death.
A further 30% thought it had to do with calculating pension income.
“These are important products and often key parts of an employee’s benefits. The confusion isn’t surprising, but it underlines why employers and policymakers need to continue working to demystify financial language and bring education into real-world settings”.
“We don’t expect everyone to be financial experts,” concluded McGurrin. “But a basic foundation – the kind that helps you ask the right questions and avoid costly mistakes – should be accessible to everyone. Financial wellbeing starts with financial confidence”.
