One-in-five people worry that the Government’s proposed new investment saving scheme will benefit only the wealthiest people in the State, according to a new survey.
And one in three fears that they might lose money by investing rather than simply putting their money in a bank, with women more sceptical than men.
Fine Gael leader and Minister for Finance Simon Harris announced earlier this year that he was looking to bring in a new easy-access, low-cost personal investment plan in the October budget. He hopes to persuade people to move some of the €170 billion sitting in bank deposit accounts earning little or nothing to invest more actively in the economy for a better potential return.
However, the Minister has yet to provide any real detail on how such a scheme will work.
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A new survey carried out by Amárach for financial advisory group Alpha Wealth found significantly different levels of enthusiasm for the scheme depending on age and income.
While 88 per cent of those aged over 65 support the initiative, this declines to 59 per cent among those aged 18-24. Similarly, four out of five (86 per cent) people aged over 55 say they would trust such a scheme to grow their money, compared to just 21 per cent among those aged 18-34.
The research also highlights differences across income groups. Nearly four out of five (78 per cent) people in higher social grades say a tax incentive would encourage them to move money from traditional savings accounts into the scheme. Among lower social grades, this falls to 57 per cent.
“The Minister must be clear about who stands to benefit most,” said Alpha Wealth managing director Nick Charalambous. “It would be wrong to present this as a scheme primarily aimed at the ordinary middle-class saver when the reality is that those with larger amounts of disposable income will inevitably be in the best position to maximise the benefits.
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“If the Government genuinely wants broad participation, it needs to ensure the design of the scheme works for lower and middle-income households as well as those who already have substantial savings,” he said.
The research shows that, overall, 76 per cent of those surveyed support the Government introducing a new savings and investment scheme. However, one in five cited a lack of trust in Government oversight and management of the scheme, while a similar number was concerned about potential fees and tax implications.
“The research clearly shows that there is significant public appetite for a Government-backed savings and investment scheme,” said Charalambous. However, he raised doubts over whether the Government can introduce it this year as planned.
“The Government must be realistic about the complexity involved and ensure that implementation isn’t rushed.”
