Pressures of the cost-of-living crisis means households saved €4,500 less this year than they could in 2020 as disposable income plummeted.
New data from data from the Organisation for Economic Co-Operation and Development (OECD) revealed families are worse off by thousands of Euro.
Money experts at Finder.com analysed the figures and found that Ireland has had the biggest drop in disposable income across the OECD’s 28 countries.
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A spokesperson said: “Irish households are predicted to save just 7% of their disposable income in 2022.
“That is down from the 21% saved in 2020. It means that Irish households can save €4,577 less this year than in 2020.
“Ireland will see the biggest savings drop out of 28 OECD nations.
“Ireland will go from being one of the world’s top savers - when they ranked 2nd in 2020 - to ranking 16th in 2022.”
Graham Cooke, who is Finder’s head of consumer research, said: “In 2020, lockdowns meant forced savings.
“However, what we’re seeing now is not just a return to normal spending patterns but also the impact of inflation.
“Inflation continues to place pressure on family budgets.
“The cost of fuel, housing, and food have all risen sharply over the past few years and wages haven’t kept up.
“This is a global phenomenon, but it’s clear from the data that consumers in Ireland are doing it particularly tough.
“It’s important to make sure the money you are saving is working as hard as it can for you.
“If you haven’t checked the rate on your savings account recently, it’s a good idea to shop around and compare your options.”
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