Over 12% of people unable to handle €1,000 financial hit

One in eight Irish consumers have no way of financing a €1,000 hit to their income, a survey assessing the capacity of consumers to weather the financial storm stemming from the Covid-19 crisis has found.

It also indicates that consumers in the 35-54 age group were less able to cope with financial shocks than other age groups, probably reflecting their greater financial commitments.

KBC Bank’s April consumer sentiment survey contained a supplementary question, which examined the financial resilience of Irish consumers.

It asked how consumers would handle an unexpected financial emergency amounting to €1,000. The question is based on one asked by the US Federal Reserve in its annual survey of the financial wellbeing of American households.

The survey found the capacity of people to cope with a financial hit varied significantly.

Roughly one in eight consumers here said they were in a position to handle a once-off financial emergency costing €1,000 whereas almost as many would be completely unable to finance such a difficulty through any means.