Irish consumers, household budgets and financial planning

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October 2011 - market research by the National Consumer Agency on Irish consumers and household budgets - 64% of consumers say household income has decreased since the same time a year ago

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Irish consumers, household budgets and financial planning

  1. 1. National Consumer Agency Market Research Findings: Household Budgeting and Financial Planning September 20 11 Research Conducted by
  2. 2. <ul><li>Key Findings </li></ul><ul><li>Household Budgeting and Financial Planning </li></ul><ul><li>Research Background and Methodology </li></ul><ul><li>Profile of Sample </li></ul>Table of Contents
  3. 3. Key Findings
  4. 4. Key Findings - I <ul><li>64% of consumers indicated that “ household income decreased since the same period in the previous year ”: </li></ul><ul><ul><li>Of these: </li></ul></ul><ul><ul><ul><li>50% = expenditure increased in the period </li></ul></ul></ul><ul><ul><ul><li>25% = expenditure remained the same </li></ul></ul></ul><ul><li>There has been a slight lift, up 5 percentage points to 16%, in the proportion of consumers who believe that Ireland will be through the worst of the recession in 12 months time </li></ul><ul><li>1 in 2 (50%) Irish Consumers budget for household expenses; higher amongst 35-44 year olds and those responsible for the main grocery shop. </li></ul><ul><li>Those who operate a budget are most likely to do so on a weekly basis </li></ul>
  5. 5. Key Findings - II <ul><li>Almost 1 in 4 (23%) have found themselves in financial difficulty within the past 12 months </li></ul><ul><li>Those who have found themselves in financial difficulty; </li></ul><ul><ul><li>3 in 5 have cut back on spending, </li></ul></ul><ul><ul><li>3 in 10 borrowed money from friends/family </li></ul></ul><ul><ul><li>while 1 in 4 took money out of savings while a similar proportion missed a payment </li></ul></ul><ul><ul><li>Over 7 in 10 (71%) consumers indicated that they shop around when purchasing car insurance, with over 6 in 10 (62%) doing so in relation to house insurance, and the corresponding figure for health insurance was just over 1 in 2 (52%) </li></ul></ul>
  6. 6. Household Budgeting and Financial Planning
  7. 7. Household Income & Expenditure - Overview Increased a lot (5) Increased a little (4) Remained the same (3) Decreased a little (2) Decreased a lot (1) INCOME EXPENDITURE (Base: All aged 15-74 – 1,000 ) () = Nov/Dec 2010 Don’t know % % 64% (61%) 77% (66%) (1) (3) (31) (37) (24) (4) (6) (18) (19) (41) (9) (7)
  8. 8. Household Income & Expenditure - I Increased a lot (5) Increased a little (4) Remained the same (3) Decreased a little (2) Decreased a lot (1) % Increased (%4/5) % Stayed the same (%3) % Decreased (%1/2) INCOME: EXPENDITURE: (Base: All aged 15-74 – 1,000) (27) (41) (25) Don't know = 7% (7% ) 89% (88%) 44% (42%) 79% (74%) () = Nov/Dec 2010 (1) (1) (12) (46) (42) (4) (54) (32) (10) (-) (2) (5) (19) (42) (32)
  9. 9. Household Income & Expenditure - II Increased a lot (5) Increased a little (4) Remained the same (3) Decreased a little (2) Decreased a lot (1) % %4/5 Increased: Base is too Small to Analyse Stayed the same (%3) % Decreased (%1/2) EXPENDITURE: INCOME: (Base: All aged 15-74 – 1,000) (61) (31) (4) Don't know = 5% (4% ) () = June 2010 50% (31%) 25% (16%) 23% (39%) (9) (22) (29) (24) (15) (2) (14) (73) (10) (1) (1) Don’t know
  10. 10. One Word to Describe: Ireland Right Now (Base: All aged 15-74 – 1,000) June 2010 May/June 2011 Nov/Dec 2010
  11. 11. One Word to Describe: Your Current Financial Situation (Base: All aged 15-74 – 1,000) May/June 2011
  12. 12. One Word to Describe: How You Yourself Feel Right Now (Base: All aged 15-74 – 1,000) Nov/Dec 2010 June 2010 May/June 2011
  13. 13. One Word to Describe: Your Job (Base: All aged 15-74 – 1,000) The predominant word used to describe how consumers currently feel about their job is ‘None’ – driven by those who are currently unemployed. However, when ‘none’ is removed – most describe their job as ‘Good’.
  14. 14. Economic Outlook – I Agree (4) Agree Strongly (5) Disagree (2) Disagree strongly (1) 73% * New Statement 72% 73% 64% 64% 65% 65% (Base: All aged 15-74 – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10 As a result of the recession I will continue to shop around for better deals when the economy has settled I am holding off on buying large spend items * I have learnt to manage my finances better as a result of the recession and will continue to do so going forward Neither/Nor (3) Mean Score 21 3.9 18 3.9 21 3.8 25 3.8 27 3.7 21 3.7 24 3.7
  15. 15. Economic Outlook – II Agree (4) Agree Strongly (5) Disagree (2) Disagree strongly (1) 53% (Base: All aged 15-74 – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10 48% 16% 11% 31% 12% 9% 12% 68% 77% 38% 79% 67% 51% I am constantly looking for better value and am switching providers regularly to achieve this Ireland will be through the worst of the recession in 12 months time I am more relaxed about spending money than I was 6 months ago Neither/Nor (3) Mean Score 29 3.5 25 3.3 16 2.2 12 1.9 31 2.8 21 2.2 12 1.9 27 2.6
  16. 16. One Word to Describe: Ireland in 12 Months Time (Base: All aged 15-74 – 1,000) Nov/Dec 2010 June 2010 May/June 2011
  17. 17. One Word to Describe: Your Future (Base: All aged 15-74 – 1,000) Nov/Dec 2010 May/June 2011 June 2010
  18. 18. Factors Which Influence Choice of Institution For.... (Base: All with a current a/c - 852) % % Current Account Savings Accounts (Base: All with a savings a/c - 848) Most Influence Any Influence Most Influence Any Influence Fees & Charges Interest paid on balance Stability/security of institution Familiarity/Past experience Recommendations from family/friends Advice given from financial advisor/broker Advertising and media coverage Fees & charges Stability/security of institution Familiarity/Past experience Interest paid on balance Recommendations from family/friends Debit Interest rate Advice given from financial advisor/broker Advertising and media coverage
  19. 19. Budgeting for Household Expenses Yes Incidence of Budgeting for Household Expenses % % (Base: All aged 15-74 – 1,000) Timeframe Budget Operated Within Daily Weekly Fortnightly Monthly Annually Quarterly <ul><li>Higher amongst: </li></ul><ul><li>35-44 year olds 68% </li></ul><ul><li>Responsible for main grocery shop 64% </li></ul><ul><li>Living in Connaught/Ulster 60% </li></ul><ul><li>Females 57% </li></ul>
  20. 20. Experience Any Financial Difficulty Yes % % (Base: All aged 15-74 – 1,000) <ul><li>Higher amongst </li></ul><ul><li>Unemployed 41% </li></ul><ul><li>25-34 year olds 32% </li></ul><ul><li>C2DE/F50- 31% </li></ul><ul><li>Part time workers 31% </li></ul>Cut back on spending Borrowed money from friends/family Took money out of savings Missed payment Worked overtime to earn extra money Used credit card Used overdraft Took out a loan Sold items Extended overdraft facility Nothing Got advice from financial agency
  21. 21. Insurance Products Held & Incidence of Shopping Around for Quotes (Base: All aged 15-74 – 1,000) % % <ul><li>Telephone 47% </li></ul><ul><li>Online 40% </li></ul><ul><li>Broker 27% </li></ul><ul><li>Telephone 43% </li></ul><ul><li>Online 37% </li></ul><ul><li>Broker 30% </li></ul><ul><li>Telephone 45% </li></ul><ul><li>Online 45% </li></ul><ul><li>Broker 14% </li></ul>Currently Held Incidence of Shopping Around for Quote Method of Shopping Around Motor Insurance Home Insurance Health Insurance Life Insurance
  22. 22. Downgrade and Renewal of Policies Don’t know (Base: All who currently have each insurance Policy) % Have you Downgraded your Policy in the last 12 Months due to Cost? No % Yes (Base: All with health insurance - 482) Likelihood to Renew Health Insurance Policy at Renewal Date (Base: 736) (Base: 624) (Base: 482) Motor Insurance Home Insurance Health Insurance
  23. 23. Research Background and Methodology
  24. 24. <ul><li>The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of 15-74. </li></ul><ul><li>To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class. </li></ul><ul><li>Interviewing was conducted over a four week period in May/June 2011. </li></ul>A. Research Background and Methodology Nov/Dec 2007 Aug 2008 Nov/Dec 2008 Nov/Dec 2009 June 2010 Nov/December 2010 Benchmark Wave 4 Wave 5 Wave 1 Wave 2 Wave 6 Current Wave May/June 2011 Wave 7 May/June 2009 Wave 3
  25. 25. B. Profile of Sample – I (Base: All aged 15-74 – 1,000) Male Female % % % % 15-24 25-34 35-44 45-54 55+ Dublin Rest of Leinster Munster Conn/ Ulster ABC1 F50+ C2DE F50- MAIN GROCERY SHOPPER Yes No
  26. 26. B. Profile of Sample – II – Main Grocery Shoppers (Base: All Mainly Responsible for Grocery Shopping in Home – 504) Male (49) Female (51) % % % % 15-24 (17) 25-34 (22) 35-44 (19) 45-54 (16) 55+ (26) ABC1 F50+ (48) C2DE F50- (52) ( ) = Total Sample Dublin (28) Rest of Leinster (26) Munster (28) Conn/ Ulster (18)
  27. 27. B. Profile of Sample – III – Internet Use (Base: All aged 15-74 – 1,000) USE INTERNET No Yes EVER PURCHASED ONLINE No Yes BANKING ONLINE No Yes (Base: All Internet Users - 750) (Base: All Internet Users - 750) () = figures from Nov/Dec 2010 (72%) (28%) (48%) (52%) (30%) (70%) % Yes % Yes % Yes Male Female 15-24 25-34 35-44 45-54 55+ Male Female 15-24 25-34 35-44 45-54 55+ Male Female 15-24 25-34 35-44 45-54 55+
  28. 28. B. Profile of Sample – IV – Social Media Type of phone Regular users of ....... (Base: All aged 15-74 – 1,000) % Higher Amongst <ul><li>15-24’s (86%) </li></ul><ul><li>25-34’s (71%) </li></ul><ul><li>35-44’s (55%) </li></ul><ul><li>ABC1/F50+ (52%) </li></ul><ul><li>15-24’s (25%) </li></ul><ul><li>15-24’s (18%) </li></ul><ul><li>55’s (90%) </li></ul><ul><li>45-54’s (71%) </li></ul>% Have a ‘Smart phone’ Higher amongst : 15-24’s 25-34’s Working full time Students Facebook Twitter Bebo Linkedin None of These

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