Three in four Irish adults would consider investing under new Government scheme

Almost three-quarters (74%) of adults in Ireland say they would be open to investing for long-term wealth building rather than relying on low-interest cash deposits, if the Government introduces simple, tax-efficient investment accounts, according to new research from Royal London Ireland.

The Government has signalled plans to introduce a new savings and investment account aimed at encouraging households to invest at least some of the €170 billion[1] currently held on deposit with banks and credit unions, much of which is earning little or no return. The initiative is expected to be announced in the next Budget.

One in five (20%) Irish adults say they would ‘definitely’ invest. A further 54% say they would ‘possibly’ consider it. Among this group, 37% say they would need more information, 9% say it would depend on the level of investment risk involved, and 8% say they would consider investing if they could afford to.

Among those not currently likely to invest:

• One in four (24%) say they would choose not to invest for a variety of reasons, including lack of funds (7%) and not understanding investing well enough (6%).
• Just 4% say they would avoid investing because they are worried about the risk of losing money.
• Another 4% say they do not trust financial institutions or investment products, while a further 3% say they would prefer to keep their savings in cash.

Noel Freeley, CEO of Royal London Ireland, commented,

“These findings suggest that people in Ireland may be more open to investing than is often assumed, particularly where the process feels straightforward and easy to understand. Just 2% of respondents said they already invest.

“What really stands out from the research is that the barriers are less about fear of losing money, and more about access to information and feeling informed enough to make a decision. That gap between intention and behaviour is particularly interesting”.

Clear demographic differences in investing attitudes

Attitudes vary across demographic groups, particularly by age, gender and location.

• Men are more likely than women to say they would ‘definitely’ invest, at 25% compared to 16% of women.
• Women are more likely to point to affordability as a barrier, with 9% saying they do not have enough money to consider investing compared to 5% of men.
• Age differences are even more pronounced. More than one in three (35%) of those aged 25–34 say they would ‘definitely’ invest, compared to 17% of those aged 45–54. Half of those aged between 18 and 34 (50%) said they would ‘definitely’ consider investing.
• Those aged 45 to 54 are also more likely to say they could not afford to invest, with 11% selecting this response.
• Dubliners are the most open to investing overall, with 81% expressing some level of willingness, including 29% who say they would ‘definitely’ invest.
• By contrast, people living in the Rest of Leinster are the least open overall, although still more than half (68%) say they would consider it.
• Socio-economic differences are also evident, with 83% of ABC1 respondents saying they would be open to investing, compared to 62% of C2DE respondents.

Mr Freeley added,

“The results suggest that while appetite to invest is broad, engagement is not yet consistent. Younger adults stand out as particularly open to investing, which is significant given the long-term value of starting earlier.

At the same time, it is clear that confidence and clarity play a central role in whether people take the next step. Even where interest is present, many still want greater guidance and understanding before committing, particularly around needing more information and what level of risk is appropriate”.

Saving habits and life circumstances

Existing saving behaviour also appears to influence openness to investing.

Among those who already save regularly, 56% say they would possibly invest if simple, tax-efficient investment accounts were introduced, compared to 44% of those who do not currently save. Savers are also almost twice as likely to say they would ‘definitely’ invest, at 21% compared to 12% of non-savers.

Mr Freeley concluded,

“Overall, the research highlights strong willingness to consider investing under the right conditions, with clear differences in confidence, experience and financial circumstances shaping how people engage with the idea.

Importantly, the findings suggest interest is not limited to those with previous investment experience or large amounts of money to put aside but extends across a broad range of consumers looking to build longer-term financial security”.