National Consumer Agency Market Research Findings: Household Budgeting and Financial Planning October 2011 Research Conducted by
2 Making Complaints Key Findings Household Budgeting and Financial Planning Research Background and Methodology Profile of Sample Table of Contents
3 Making Complaints Key Findings
4 Making Complaints 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 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
5 Making Complaints 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%)
6 Making Complaints Household Budgeting and Financial Planning
7 Making Complaints Household Income & Expenditure - Overview Increased a lot (5) Increased a little (4) Remained the same (3) Decreased a little (2) Decreased a lot (1) INCOMEEXPENDITURE (Base: All aged – 1,000 ) () = Nov/Dec 2010 Don’t know % 64% (61%) 77% (66%) (1) (3) (31) (37) (24) (4) (6) (18) (19) (41) (9) (7)
8 Making Complaints 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 – 1,000) (27)(41)(25) Don't know = 7% (7% ) 89% (88%) 44% (42%) 79% (74%) () = Nov/Dec 2010 (1) (12) (46) (42) (4) (54) (32) (10) (-) (2) (5) (19) (42) (32)
9 Making Complaints 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 – 1,000) (61)(31) (4) Don't know = 5% (4% ) () = June % (31%) 25% (16%) 23% (39%) (9) (22) (29) (24) (15) (2) (14) (73) (10) (1) Don’t know
10 Making Complaints One Word to Describe: Ireland Right Now (Base: All aged – 1,000) June 2010 May/June 2011 Nov/Dec 2010
11 Making Complaints One Word to Describe: Your Current Financial Situation (Base: All aged – 1,000) May/June 2011
12 Making Complaints One Word to Describe: How You Yourself Feel Right Now (Base: All aged – 1,000) Nov/Dec 2010 June 2010 May/June 2011
13 Making Complaints One Word to Describe: Your Job (Base: All aged – 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’.
14 Making Complaints Economic Outlook – I 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 Disagree (2) Disagree strongly (1) 73% * New Statement 72% 73% 64% 65% (Base: All aged – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10
15 Making Complaints Economic Outlook – II I 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 Disagree (2) Disagree strongly (1) 53% (Base: All aged – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10 48% 16% 11% 31% 12% 9% 12% 68% 77% 38% 79% 67% 51%
16 Making Complaints One Word to Describe: Ireland in 12 Months Time (Base: All aged – 1,000) Nov/Dec 2010 June 2010 May/June 2011
17 Making Complaints Nov/Dec 2010 One Word to Describe: Your Future (Base: All aged – 1,000) May/June 2011 June 2010
18 Making Complaints Factors Which Influence Choice of Institution For.... (Base: All with a current a/c - 852) % Current AccountSavings Accounts Fees & Charges Interest paid on balance Stability/security of institution Familiarity/Past experience Recommendations from family/friends Advice given from financial advisor/broker Advertising and media coverage (Base: All with a savings a/c - 848) 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/broker Advertising and media coverage Most Influence Any Influence Most Influence Any Influence
19 Making Complaints Budgeting for Household Expenses Yes Incidence of Budgeting for Household Expenses % (Base: All aged – 1,000) Timeframe Budget Operated Within Daily Weekly Fortnightly Monthly Annually Quarterly Higher amongst: year olds 68% Responsible for main grocery shop 64% Living in Connaught/Ulster 60% Females 57%
20 Making Complaints Experience Any Financial Difficulty Yes % (Base: All aged – 1,000) Higher amongst Unemployed 41% 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
21 Making Complaints Insurance Products Held & Incidence of Shopping Around for Quotes (Base: All aged – 1,000) % Motor Insurance Home Insurance Health Insurance Life Insurance % 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
22 Making Complaints 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 Yes (Base: All with health insurance - 482) Likelihood to Renew Health Insurance Policy at Renewal Date (Base: 736) (Base: 624) (Base: 482)
23 Making Complaints Research Background and Methodology
24 Making Complaints The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of 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 A. Research Background and Methodology Nov/Dec 2007 Aug 2008 Nov/Dec 2008 Nov/Dec 2009June 2010 Nov/December 2010 Benchmark Wave 4Wave 5 Wave 1Wave 2 Wave 6 Current Wave May/June 2011 Wave 7 May/June 2009 Wave 3
25 Making Complaints B. Profile of Sample – I (Base: All aged – 1,000) Male Female % %% Dublin Rest of Leinster Munster Conn/ Ulster ABC1 F50+ C2DE F50- MAIN GROCERY SHOPPER YesNo
26 Making Complaints B. Profile of Sample – II – Main Grocery Shoppers (Base: All Mainly Responsible for Grocery Shopping in Home – 504) Male (49) Female (51) %% (17) (22) (19) (16) 55+ (26) ABC1 F50+ (48) C2DE F50- (52) ( ) = Total Sample Dublin (28) Rest of Leinster (26) Munster (28) Conn/ Ulster (18)
27 Making Complaints B. Profile of Sample – III – Internet Use (Base: All aged – 1,000) USE INTERNET No Yes EVER PURCHASED ONLINE No Yes BANKING ONLINE No Yes (Base: All Internet Users - 750) () = figures from Nov/Dec 2010 (72%) (28%) (48%) (52%) (30%) (70%) Male Female % Yes Male Female % Yes Male Female % Yes
28 Making Complaints B. Profile of Sample – IV – Social Media Type of phone Regular users of (Base: All aged – 1,000) Higher amongst: 15-24’s 25-34’s Working full time Students % Higher Amongst Facebook Twitter Bebo Linkedin None of These 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’