Households save €1 in every €8 as experts urge smarter investment
Ottoline Spearman
Households saved €1 in every €8 of their disposable income in the last three months of 2025.
A new report from the CSO shows that the provisional savings rate for the last quarter of 2025 was 12.4 per cent, which was below the 13 per cent average since the beginning of 2023.
During 2025, the saving rate was 13.6 per cent, meaning that about €1 in every €7 of disposable income was set aside over the course of last year.
Statistician Mark Matno said that while the savings rate tends to be "more variable" in the last quarter of each year due to additional spending over the Christmas period, nonethelessness, this is the "lowest seasonally adjusted household saving rate since the 12 per cent rate of Q2 2024".
Saving can add to overall wealth through allowing people to buy new homes, save for their pensions, and pay off debt.
The real risk to people's wealth is doing nothing - Keith Butler
However, despite the €171.3 billion held across the coutry in deposit accounts, these earn very little interest. Experts are recommending investing time in researching and understanding better investment options to maximise savings.
Teresa Bruen, Financial Planning Consultant at Gallagher said: "This reflects the strong saving culture in Ireland, with many families taking a cautious approach to managing their finances amid ongoing economic pressures.
"However, headline figures can mask the reality for many households who are still feeling the pinch from rising everyday costs, from groceries and utilities to fuel and transport.
"While Ireland is very good at saving, it is far less confident when it comes to investing. A large volume of household wealth is effectively parked in cash or property, which is safe in the short term but often inefficient over longer time horizons.
"Many savers continue to use easy-access accounts as the default, missing out on better returns available through short-term fixed deposits or other investment options."
Bruen recommended guidance to educate people on investing, and as well as "improving understanding of inflation, diversification, and investment horizons... and simplifying tax and product structures".
"Strong saving habits are a positive foundation, but the focus now needs to be on how savings are structured.
"A balanced approach across cash, pensions, and long-term investments will help households build financial resilience and ensure rising wealth translates into real security over time.”
Keith Butler, CEO of financial consulting firm Ask Acorn said: “While the report shows that Irish households saved €2.5bn in the last three months of 2025, thousands of people are actually losing money by letting their hard-earned cash sit in low-interest deposit accounts.
"Recent discussions about State-backed savings schemes could encourage more people to invest, and public provision is a starting point, but households need to actively plan and take advice to make their wealth work for them.
"Individual financial planning and preparation is crucial – the real risk to people’s wealth is doing nothing."
