Most SSIA-holders intend to keep saving - survey
A Bank of Ireland survey has found that only 17% of customers intend to spend all of their SSIA savings when the scheme matures.
BoI, one of the largest SSIA providers with 23% market share, conducted a survey of its SSIA customers which also discovered that only 35% will mature in 2006. The remainder will mature in 2007, 60% doing so in the last three months of the scheme.
Some 76% of SSIA customers were first-time savers, 24% of them between 25 and 34 years old and 22% over 55. About 79% of first time savers opted for a deposit SSIA and 21% for the equity product.
Of the 24% experienced savers, 70% opted for a deposit SSIA with 30% choosing the equity product. 83% of SSIA customers were opportunists, 46% of accounts of were opened merely to take advantage of the government bonus.
Overall satisfaction with the scheme was high with 94% satisfied with the returns to date and 90% stating that they would choose the same product again.
Customers with equity products are likely to be rewarded for the extra risk, Bank of Ireland said today, with the bounce-back in markets having a positive effect on returns to date, positioning this product as the likely top performer on maturity.
Commenting on the findings of the research, Brian Forrester, Managing Director, Bank of Ireland Life, said: "We are very pleased with the findings of this research, particularly in terms of the lower level of spending than has been speculated. 83% of SSIA customers intend reinvesting some or all of their monies.
"The survey showed that 86% of customers would continue to save into their SSIA account if the Government introduced a bonus or tax incentive. If a tax incentive were introduced for people to transfer all or part of their SSIA funds into a pension fund, 51% would be likely to do so.
"This sends a very strong message to the Government and provides an excellent opportunity to increase the level of pensions funding from its current low level."
The research also revealed what was top of the shopping lists for those who intend to spend some or all of their savings. Car purchase topped the list at 23%, closely followed by home improvements at 21% and holidays at 19%.
