Government ‘will struggle to sell its saving plan’
The government may have trouble selling its new savings scheme if it involves investing in shares, a finance expert warned yesterday.
Brendan Burgess said the government will have trouble enticing people to invest in shares after thousands were burned by the collapse in Eircom.
The former Telecom Éireann was floated by the government in 1999 at €3.90 a share, but by September 2000, shares had plummeted 30%.
The company was eventually delisted in 2001, rendering the original shares worthless to those who held them.
Now, just 5% of Irish savings are invested in the financial markets such as stocks and shares, which the Central Bank described as "a relatively small share of the total".
A Central Bank report has said savers prefer to "retain savings in bank accounts or allocate them to pension products rather than invest directly".
(Pic: Sasko Lazarov / © RollingNews.ie)
The report into household investments said: "As of [the third quarter of] 2025, total financial assets of Irish households stood at €589bn, with the largest share of this held in insurance and pension entitlements (46%) and currency and deposits (37%).
"Outside the financial balance sheet, housing remains the primary asset, accounting for most household wealth in Ireland."
(Pic: Getty Images)
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