1. National Consumer Agency Market Research Findings: Household Budgeting and Financial Planning October 2011 Research Conducted by

2. 2 Making Complaints www.nca.ie  Key Findings  Household Budgeting and Financial Planning  Research Background and Methodology  Profile of Sample Table of Contents

3. 3 Making Complaints www.nca.ie Key Findings

4. 4 Making Complaints www.nca.ie 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 35-44 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. 5 Making Complaints www.nca.ie 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. 6 Making Complaints www.nca.ie Household Budgeting and Financial Planning

7. 7 Making Complaints www.nca.ie 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 15-74 – 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. 8 Making Complaints www.nca.ie 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 15-74 – 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. 9 Making Complaints www.nca.ie 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 15-74 – 1,000) (61)(31) (4) Don't know = 5% (4% ) () = June 2010 50% (31%) 25% (16%) 23% (39%) (9) (22) (29) (24) (15) (2) (14) (73) (10) (1) Don’t know

10. 10 Making Complaints www.nca.ie One Word to Describe: Ireland Right Now (Base: All aged 15-74 – 1,000) June 2010 May/June 2011 Nov/Dec 2010

11. 11 Making Complaints www.nca.ie One Word to Describe: Your Current Financial Situation (Base: All aged 15-74 – 1,000) May/June 2011

12. 12 Making Complaints www.nca.ie One Word to Describe: How You Yourself Feel Right Now (Base: All aged 15-74 – 1,000) Nov/Dec 2010 June 2010 May/June 2011

13. 13 Making Complaints www.nca.ie One Word to Describe: Your Job (Base: All aged 15-74 – 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. 14 Making Complaints www.nca.ie 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 213.9 183.9 213.8 253.8 273.7 213.7 243.7 Disagree (2) Disagree strongly (1) 73% * New Statement 72% 73% 64% 65% (Base: All aged 15-74 – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10

15. 15 Making Complaints www.nca.ie 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 293.5 253.3 162.2 121.9 312.8 212.2 121.9 272.6 Disagree (2) Disagree strongly (1) 53% (Base: All aged 15-74 – 1,000) May/June ‘11 Nov/Dec ‘10 June ‘10 48% 16% 11% 31% 12% 9% 12% 68% 77% 38% 79% 67% 51%

16. 16 Making Complaints www.nca.ie One Word to Describe: Ireland in 12 Months Time (Base: All aged 15-74 – 1,000) Nov/Dec 2010 June 2010 May/June 2011

17. 17 Making Complaints www.nca.ie Nov/Dec 2010 One Word to Describe: Your Future (Base: All aged 15-74 – 1,000) May/June 2011 June 2010

18. 18 Making Complaints www.nca.ie 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. 19 Making Complaints www.nca.ie Budgeting for Household Expenses Yes Incidence of Budgeting for Household Expenses % (Base: All aged 15-74 – 1,000) Timeframe Budget Operated Within Daily Weekly Fortnightly Monthly Annually Quarterly Higher amongst: 35-44 year olds 68% Responsible for main grocery shop 64% Living in Connaught/Ulster 60% Females 57%

20. 20 Making Complaints www.nca.ie Experience Any Financial Difficulty Yes % (Base: All aged 15-74 – 1,000) Higher amongst Unemployed 41% 25-34 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. 21 Making Complaints www.nca.ie Insurance Products Held & Incidence of Shopping Around for Quotes (Base: All aged 15-74 – 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. 22 Making Complaints www.nca.ie 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. 23 Making Complaints www.nca.ie Research Background and Methodology

24. 24 Making Complaints www.nca.ie  The research was conducted by means of face-to-face interviewing with 1,000 people between the ages of 15-74.  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 2011. 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. 25 Making Complaints www.nca.ie B. Profile of Sample – I (Base: All aged 15-74 – 1,000) Male Female % %% 15-24 25-34 35-44 45-54 55+ Dublin Rest of Leinster Munster Conn/ Ulster ABC1 F50+ C2DE F50- MAIN GROCERY SHOPPER YesNo

26. 26 Making Complaints www.nca.ie B. Profile of Sample – II – Main Grocery Shoppers (Base: All Mainly Responsible for Grocery Shopping in Home – 504) Male (49) Female (51) %% 15-24 (17) 25-34 (22) 35-44 (19) 45-54 (16) 55+ (26) ABC1 F50+ (48) C2DE F50- (52) ( ) = Total Sample Dublin (28) Rest of Leinster (26) Munster (28) Conn/ Ulster (18)

27. 27 Making Complaints www.nca.ie B. Profile of Sample – III – Internet Use (Base: All aged 15-74 – 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 15-24 25-34 35-44 45-54 55+ % Yes Male Female 15-24 25-34 35-44 45-54 55+ % Yes Male Female 15-24 25-34 35-44 45-54 55+ % Yes

28. 28 Making Complaints www.nca.ie B. Profile of Sample – IV – Social Media Type of phone Regular users of....... (Base: All aged 15-74 – 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’