Irish Savings Rate Declines as Minister Harris Considers New Investment Scheme
Irish households saved 12.4% of their disposable income in the final quarter of 2025, equivalent to €1 in every €8, according to the Central Statistics Office (CSO). While the provisional saving rate for the entire year 2025 stood at 13.6%, similar to 2024 but higher than 2023, a slight decrease was observed in the final three months [1]. This comes as Minister for Finance Simon Harris prepares to introduce a new savings scheme designed to encourage investment.
Decline in Savings Rate Linked to Increased Spending
The decrease in the seasonally adjusted household saving rate is attributed to a combination of flat household income and a 2% increase in consumer spending during the same period [1]. The CSO noted that savings rates often fluctuate in the fourth quarter due to increased spending during the Christmas season.
Government Considers New Savings Incentive Scheme
Minister Harris is exploring the implementation of an easy-access savings scheme to boost investment among Irish households. Canada’s Tax-Free Savings Account (TFSA), which allows individuals to save up to CAD 7,000 (approximately €4,339) annually tax-free, is being considered as a potential model [1]. The European Commission is also advocating for member states to develop tax-efficient savings vehicles to strengthen the savings and investment union and enhance EU competitiveness.
Significant Household Deposits Remain Uninvested
Irish households currently hold approximately €170 billion in bank deposits, much of which is earning minimal or no returns [1]. Experts suggest that while Ireland demonstrates a strong saving culture, there is a lack of confidence in investing.
Expert Commentary on Savings and Investment Trends
Teresa Bruen of Gallagher insurance broker highlighted that a substantial portion of household wealth remains parked in cash or property, which may be safe in the short term but often underperforms over longer periods [1]. She noted that many savers default to easy-access accounts, missing out on potentially higher returns from fixed deposits or other investment options.
Bruen cautioned that while a scheme similar to the Special Savings Incentive Account (SSIA) – a popular scheme introduced in 2001 by then-Minister for Finance Charlie McCreevy – could encourage middle-income savers to invest, such schemes carry inherent risks and do not guarantee returns. She emphasized the importance of financial guidance to prevent individuals from investing in unsuitable assets or struggling with market volatility.
Employment Growth Continues
Ireland’s labor market continues to show strength, with 56,700 jobs created in the year to Q4 2025, bringing total employment to 2.83 million [2]. Employment growth was widespread across regions, with a 1.9% increase in employment outside of Dublin, amounting to 37,400 jobs [2]. Full-time employment rose by 2.5% year-on-year, while part-time employment increased by 0.3% [2].
National Accounts Published
The Central Statistics Office has published the Quarterly National Accounts for Quarter 4 2025 [1]. Tánaiste and Minister for Finance, Simon Harris, commented on the figures.