irish consumers, household budgets and financial planning
DESCRIPTION
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 agoTRANSCRIPT
National Consumer Agency
Market Research Findings:Household Budgeting and Financial Planning
September 2011Research Conducted by
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Key Findings
Household Budgeting and Financial Planning
Research Background and Methodology
Profile of Sample
Table of Contents
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Key Findings
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Key Findings - I
• 64% of consumers indicated that “household income decreased since the same period in the previous year”: Of these:
• 50% = expenditure increased in the period• 25% = expenditure remained the same
• 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
• 1 in 2 (50%) Irish Consumers budget for household expenses; higher amongst 35-44 year olds and those responsible for the main grocery shop.
• Those who operate a budget are most likely to do so on a weekly basis
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Key Findings - II
• Almost 1 in 4 (23%) have found themselves in financial difficulty within the past 12 months
• Those who have found themselves in financial difficulty;
• 3 in 5 have cut back on spending,
• 3 in 10 borrowed money from friends/family
• while 1 in 4 took money out of savings while a similar proportion missed a payment
• 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%)
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Household Budgeting and Financial Planning
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14
27
27
36
1127
55 7
13
37
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)
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1 11 5 310
50
17
31
44
47
13
35
42
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)
16 36 41(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)
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19
3
31
22
2568
5822
15
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)
64 27 4(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
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One Word to Describe: Ireland Right Now(Base: All aged 15-74 – 1,000)
June 2010
May/June 2011
Nov/Dec 2010
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One Word to Describe: Your Current Financial Situation(Base: All aged 15-74 – 1,000)
May/June 2011
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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
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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’.
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’.
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Economic Outlook – I
51
43
60
36
48
44
54
22
29
13
28
16
21
127
11
8
8
5
7
42
3
1
3
1
3
3
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
Agree(4)
Agree Strongly (5) 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
Disagree(2)
Disagree strongly
(1)
73%
* New Statement
72%
73%
64%
64%
65%
65%
(Base: All aged 15-74 – 1,000)May/June ‘11Nov/Dec ‘10
June ‘10
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Economic Outlook – II
38
30
14
10
28
11
7
11
15
18
2
1
3
1
2
136
34
40
26
31
38
21
13
15
45
27
12
46
30
6
5I 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
Agree(4)
Agree Strongly
(5) 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
Disagree(2)
Disagree strongly
(1)
53%
(Base: All aged 15-74 – 1,000)
May/June ‘11Nov/Dec ‘10
June ‘10
48%
16%
11%
31%
12%
9%
12%
68%
77%
38%
79%
67%
51%
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One Word to Describe: Ireland in 12 Months Time(Base: All aged 15-74 – 1,000)
Nov/Dec 2010
June 2010
May/June 2011
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Nov/Dec 2010
One Word to Describe: Your Future(Base: All aged 15-74 – 1,000)
May/June 2011
June 2010
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27
21
23
13
9
7
9 28
26
28
40
49
54
60
Factors Which Influence Choice of Institution For....
(Base: All with a current a/c - 852)%
38
19
12
12
9
5
4
2 13
20
20
30
42
43
44
73
%
Current Account Savings Accounts
Fees & Charges
Interest paid on balance
Stability/security of institution
Familiarity/Past experience
Recommendations from family/friendsAdvice given from financial advisor/brokerAdvertising and media coverage
85%
(Base: All with a savings a/c - 848)
85%
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/brokerAdvertising and media coverage
Most Influence
Any Influence
Most Influence
Any Influence
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50%
Budgeting for Household Expenses
Yes
Incidence of Budgeting for Household Expenses
%%
(Base: All aged 15-74 – 1,000)
Timeframe Budget Operated Within
7
59
7
21
24
Daily
Weekly
Fortnightly
Monthly
Annually Quarterly
Higher amongst:35-44 year olds 68%
Responsible for main grocery shop 64%
Living in Connaught/Ulster 60%Females 57%
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59
30
25
24
11
10
7
6
4
3
2
1
23%
Experience Any Financial Difficulty
Yes
%%
(Base: All aged 15-74 – 1,000)
Higher amongstUnemployed 41%
25-34 year olds 32%C2DE/F50- 31%
Part time workers 31%
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
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Insurance Products Held & Incidence of Shopping Around for Quotes(Base: All aged 15-74 – 1,000)
%
Motor Insurance
Home Insurance
Health Insurance
Life Insurance
74
62
48
46
%
71
62
52
Telephone 47% Online 40% Broker 27%
Telephone 43% Online 37% Broker 30%
Telephone 45% Online 45% Broker 14%
Currently Held
Incidence of Shopping Around for Quote
Method of Shopping Around
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32%
64%
4%
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
%
Motor Insurance
Home Insurance
Health Insurance
7
12
10Yes
(Base: All with health insurance - 482)
Likelihood to Renew Health Insurance Policy at Renewal Date
(Base: 736)
(Base: 624)
(Base: 482)
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Research Background and Methodology
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The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of 15-74.
To ensure that the data is nationally representative, quotas were applied on the basis of age, gender and social class.
Interviewing was conducted over a four week period in May/June 2011.
A. Research Background and Methodology
Nov/Dec 2007
Aug 2008Nov/Dec
2008
Nov/Dec 2009 June 2010Nov/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
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1728
4822
52
19
2816
1826
49
26
51
SEX AGE REGIONSOCIALCLASS
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+
C2DEF50-
MAIN GROCERY SHOPPER
Yes No50%50%
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5
25
4620
54
24
28
18
1833
22
29
78
SEX AGE REGIONSOCIALCLASS
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)
50%
( ) = Total Sample
Dublin(28)
Rest of Leinster
(26)
Munster(28)
Conn/ Ulster
(18)
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75
75
95
90
88
74
41
48
49
29
63
56
53
36
70
69
62
78
72
74
56
49%51%70%30%
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)
75%
25%
() = figures from Nov/Dec 2010
(72%)
(28%)(48%)(52%)(30%) (70%)
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
Male
Female
15-24
25-34
35-44
45-54
55+
% Yes
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B. Profile of Sample – IV – Social Media
Type of phoneRegular users of .......
(Base: All aged 15-74 – 1,000)
33
33
32
32
21%
Higher amongst:
15-24’s
25-34’s
Working full time
Students
%
Higher Amongst
Bebo
None of These
47
10
6
1
51
15-24’s (86%) 25-34’s (71%) 35-44’s (55%) ABC1/F50+ (52%)
15-24’s (25%)
15-24’s (18%)
55’s (90%) 45-54’s (71%)
%
Have a ‘Smart phone’