THOUSANDS OF Irish people are not putting any money aside for emergencies and unforeseen circumstances, a new survey has found.

The Nationwide UK (Ireland)ESRI Savings Index found 43 per cent of Irish people do not put any money away in banks or building societies – the highest level of non-saving recorded since the survey began in 2010 and an increase from 35 per cent a year ago.

Among the over-50s, almost half (49 per cent) are not saving at all, an increase from 42 per cent in June 2011. That compares with a figure of 39 per cent for the under-50s, up from 31 per cent last year.

Some 47 per cent of people believe that current economic conditions mean now is a bad time to save, according to the survey, up from 37 per cent this time last year.

Of those consumers who are able to save occasionally or regularly, 28 per cent save more than €200 a month, while a further 24 per cent save between €101 and €200.

The single biggest reason why people were saving was to cover unforeseen expenses, with some 43 per cent anxious to put rainy day cash aside.

Education and training was the next most popular reason for saving – which, at 17 per cent, was up 3 per cent on this time last year.

Some 11 per cent said that they were saving for a holiday, compared to the 8 per cent last year.

Commenting on the index, Brendan Synnott, managing director of Nationwide UK (Ireland) said: “The economic environment has become less favourable towards saving as evidenced by reductions in deposit interest rates by numerous institutions.

“In addition, the level of tax on savings has increased during the year making the return from savings less attractive,” he said.

At the same time, the majority of people who have spare funds available are using them to pay down debt, possibly because there is less credit available, he added.