BY JOHN ELLIS, FINANCIAL ADVISOR
The economy is thriving this year with tech giants and exports fuelling growth. At the end of January this year, Irish households held over €163 billion in deposits in financial institutions, marking the highest level on record. Yet, more than 40% of adults have less than €5,000 in savings, and only 35% of private sector workers have pensions according to Central Bank data.
Despite our Celtic Tiger ‘scars’ many Irish households are financially insecure. Have we not seen friends and family juggle sky-high rents and ‘crypto fashions’. We urgently need professional financial advice. But too many of us refuse it.
Financial advice isn’t just for the wealthy. It’s for all. Take pensions as a prime example. The State pension won’t sustain a comfortable retirement with life expectancy now past 80. The upcoming auto-enrolment scheme may but, without real guidance, you risk underfunding and/or making poor investment choices.
The housing crisis adds complexity. First-time buyers face tricky mortgage options from the current providers and the Help-to-Buy schemes. With global trade risks (eg. Trump’s tariffs) and inflation hitting budgets, we all need advice either toward diversified investments or planning emergency funds, preventing 2008-style mistakes.
So why do we shun this help? Overconfidence! An ESRI study shows 60% of Irish adults think they’re “above average” when it comes to money management. Yet many fall for high-interest credit cards or “pub-inspired” stock picks. Cost is another barrier. Two hundred to €500 for a consultation feels steep when your energy bills have doubled. But skipping advice costs more long-term, from missed tax breaks to bad investments.
Distrust lingers too. Fuelled by scandals like the tracker mortgage saga, making us wary of ‘salesy’ advisors. And, as The Irish Times recently noted, we often seek validation not guidance, chasing risky trends like crypto instead of stable portfolios.
Cultural factors play a role. Ireland’s boom-and-bust history breeds a ‘live for today’ mindset. Why plan when another recession looms? Social media is not helping, with influencers pushing get-rich-quick schemes. Women especially face a hurdle. Irish Life data shows they save less for retirement due to career breaks and the gender pay gap yet often avoid advice due to time or intimidation in a male-dominated field.
We need a mindset shift. Policymakers could develop financial education to include schools or subsidise advice through credit unions. You could start today by using the free tools from the Competition and Consumer Protection Commission, then consult a registered advisors via the Central Bank of Ireland registers.
Why? Stronger savings, better legacies, and an economy where growth benefits all, not just the financially literate. Ignoring advice isn’t independence. It’s reckless. As we navigate opportunity and uncertainty let’s choose wisdom over wishful thinking.
You will thank yourself in time to come.
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