Finances for Young People - Ireland - June 2006

Table of Contents

• Introduction
• Other Mintel publications
• The lifestage approach
  • Figure 1: Percentage of adults in each lifestage, NI and RoI, 2005
• Regional definitions
• Population 2005
• BMRB Target Group Index (TGI) sample sizes
• Sample sizes for Millward Brown data
• Additional research
• Abbreviations
• Summary of Key Findings
• Greater use of daily banking services
• Single life lasts longer
• Fewer under-35's -- but with more money
• Targeting young adults
• Under-35's more conscious of debt
• Insurance: NI under-35's take their chances
• 22% of RoI young people buy homes...before it's too late!
• Channel usage -- Internet vs telephone banking
• Interest in pension starts around the age of 25...
• ...yet schemes will start later
• Renting culture comes to Ireland
• Earnings gap for men and women lowest for the under-35's in NI
• Factors Influencing Finances
• Maturity and financial focus
  • Figure 2: Agreement with selected statements, % point difference from average, by Special Groups, NI and RoI, 2005
  • Figure 3: Agreement with selected statements, by age group, NI and RoI, 2005
• Long-term responsibilities delayed
  • Figure 4: Average age at marriage, men and women, NI and RoI, 2000-05
  • Figure 5: Average age of women at birth of first child, NI and RoI, 1991-2005
• Population of under-35's -- static or declining
  • Figure 6: Population projections, by age group, (000's), NI, 2000-20
  • Figure 7: Population projections, by age group, (000's), RoI, 2000-20
• Living status and mortgages
  • Figure 8: Home ownership among under-35's, by NI and RoI, 2001-05
  • Figure 9: Average age of first time buyers, UK, 1974-2005
• Under 35 employment trends
  • Figure 10: Percentage in employment, by age group, NI and RoI, 2000-05
• Declining employment for under 25's means they earn less money
• More 25-34 in employment means more 'money for me'
• Earnings for under-35's show lower gender gap
  • Figure 11: average weekly earnings of full-time workers, by age group & gender, NI, 2005
  • Figure 12: Gender pay gap (difference between men and women's average earnings), NI and RoI, 1998-2003
  • Figure 13: Average weekly earnings by age group, NI, 2000-05
• Low interest rates benefit young shoppers
  • Figure 14: UK and eurozone interest rates, 1998-2006
• Pensions
• Financial Priorities
  • Figure 15: Spending choice groups, by age, NI and RoI, 2005
• Northern Ireland
  • Figure 16: Spending priorities, NI, 2003 and 2005
• Homes and holidays increase
• Home decoration is losing importance
  • Figure 17: Top ten spending priorities, by age, NI, 2005
• Under 25 men move into top gear...
• ...but home spending wins out over cars for 25-34 men
• Women 25-34 focus on nesting
• Republic of Ireland
  • Figure 18: Spending priorities, RoI, 2003 and 2005
• Buy home now (before it is too late!)
  • Figure 19: Top ten spending priorities, by age, RoI, 2005
• Higher desire to save among men
• New car market should target 25-34 men
• Young Consumers and Financial Services
• Young people's finance in context
  • Figure 20: Agreement with "I am very good at managing money", NI and RoI, 2005
  • Figure 21: Use of financial products, by special lifestage groupings, NI and RoI, 2005
• Changing use of services
• Northern Ireland
  • Figure 22: Use of financial products, NI, 2001-05
• Republic of Ireland
  • Figure 23: Use of financial products, RoI, 2001-05
• Daily banking
  • Figure 24: Penetration of current and savings accounts and number of accounts, NI and RoI, 2003 and 2005
• Current accounts
  • Figure 25: Penetration of current accounts, NI and RoI, 2005
• Internet and telephone banking
  • Figure 26: Access and use of telephone and Internet banking, NI and RoI, 2005
  • Figure 27: Activities that telephone and Internet banking were used for, NI and RoI, 2005
• Savings accounts
  • Figure 28: Agreement with "I am no good at saving money", NI and RoI, 2001-05
  • Figure 29: Penetration of savings accounts, NI and RoI, 2003 and 2005
• Credit cards
  • Figure 30: penetration of credit cards, NI and RoI, 2003-05
• Attitudes to credit
  • Figure 31: Agreement with selected statements, NI and RoI, 2002-05
  • Figure 32: Penetration of credit cards, NI and RoI, 2005
  • Figure 33: Money spent on credit cards, NI and RoI, 2005
  • Figure 34: How money spent on credit cards is cleared, NI and RoI, 2005
• Mortgages
  • Figure 35: Mortgage penetration, NI and RoI, 2001-05
  • Figure 36: Ownership of mortgages, NI and RoI, 2005
  • Figure 37: Mortgage penetration, by demographic groups, NI and RoI, 2005
• Insurance
  • Figure 38: Use of financial products, NI and RoI, 2003-05
• Change in attitude to insurance
  • Figure 39: Agreement with "It is important to be well insured for everything", NI and RoI, 2002-05
  • Figure 40: Agreement with "It is important to be well insured for everything", NI and RoI, 2003 and 2005
  • Figure 41: Use of insurance products, by various demographic groupings, NI, 2005
  • Figure 42: Use of insurance products, by various demographic groupings, RoI, 2005
• Pensions
  • Figure 43: Use of pension schemes, by special lifestage groupings, NI & RoI, 2005
• Changing attitude to pensions
  • Figure 44: Agreement with "Financial security after retirement is your own responsibility", NI & RoI, 2002-05
  • Figure 45: Use of pension schemes, by demographic groupings, NI & RoI, 2005
• Pension schemes to start later
• Targeting Young Consumers
  • Figure 46: Population size of cluster groups, NI and RoI, 2005
• Northern Ireland
  • Figure 47: Agreement with selected lifestyle statements (% difference from average), by cluster groups, NI, 2005
  • Figure 48: Perceptual map of cluster groups, NI 2005
  • Figure 49: Market and size of cluster groups, NI, 2005
  • Figure 50: Demographic make-up of cluster groups, NI, 2005
• Republic of Ireland
  • Figure 51: Agreement with selected lifestyle statements (% difference from average), by cluster groups, RoI, 2005
  • Figure 52: Perceptual map of cluster groups, RoI 2005
  • Figure 53: Market and size of cluster groups, RoI, 2005
  • Figure 54: Demographic make-up of cluster groups, RoI, 2005
• Use of financial services
• Northern Ireland
  • Figure 55: Use of financial services, by cluster groups, NI, 2005
• Republic of Ireland
  • Figure 56: Use of financial services, by cluster groups, RoI, 2005
• Credit cards
• Northern Ireland
  • Figure 57: Credit card usage by cluster groups, NI, 2005
• Sensible Spenders are the most regular users -- but may be rate tarts!
• Serious Shoppers are an untapped market
• Republic of Ireland
  • Figure 58: credit card usage by cluster groups, RoI, 2005
• Pleasure Planners spend most and settle quickest
• Currency Constrained market untapped
• Cashback cards for Cash Converters
• Attitudes to finance
• Northern Ireland
  • Figure 59: Agreement with selected finance related statements, by cluster group, % point difference from average, NI 2005
• Serious Shoppers leave finance to 'others'
• Cash Careless are weak pension targets
• Republic of Ireland
  • Figure 60: Agreement with selected finance related statements, by cluster group, % point difference from average, RoI 2005
• Sensible Spenders are the best pension targets
• The Future
• Fewer pensions among young people
• Insurance use likely to decline further
• Finance management pushed until later in life
• Appendix
• Population
  • Figure 61: Forecast population change, in thousands, NI, 2000-20Figure 62: Forecast population change, in thousands, RoI, 2000-20
• Economy
  • Figure 63: Health of the economy, percentage growth, RoI and NI, 2002-06
• Household composition
  • Figure 64: Number of households, by size, NI and RoI, 2000-05
• Current accounts used by under-35's
  • Figure 65: Current account held by age group, NI and RoI, 2005