Many homeowners putting off ‘big life plans’ due to cost of living

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With Ireland’s inflation rate stubbornly remaining at over 7%, people throughout the country are putting big plans and major life decisions on the long finger or cancelling them entirely in a bid to combat the cost-of-living challenges.

A recent poll of 1,000 people carried out to determine the effects rising inflation is having on major life decisions, 24% of homeowners who had intended to make some big changes said they have decided to put some of them off this year, with a further 22% putting off all major plans entirely. 

The survey, which was commissioned by Aviva Insurance Ireland DAC (Aviva), found that those aged between 45 and 54 are most likely (54%) to delay their plans due to inflation and the financial uncertainty it brings.

Of the big life changes people are placing on hold: 65% are putting off home improvement plans, which increases to 83% in the case of people who own their own home; Almost three in ten (28%) are stalling on either buying a home or moving to a new one; while one in five (19%) of those aged 55+ are putting off retiring.

In terms of plans that respondents are pressing ahead with despite inflation – home improvements are the forerunner, with 58% of homeowners saying they are still planning to make improvements to their home this year. Of the 15% who are not putting off any big plans this year, 21% are moving forward with their plans to buy a house or apartment and a further 10% of those surveyed are looking to move

Billy Shannon of Aviva commented: “People are even putting off some major milestones such as buying a home (15%), retiring (8%), having a baby (6%), and getting married (5%). Many people simply do not feel comfortable with starting the next chapter of their lives possibly out of fear that they won’t have the finances available to support themselves in the future. 

“Of course, all of this will have a knock-on impact on Ireland’s societal landscape with couples getting married and having children later in life, people renting for longer and those nearing retirement working past the national retirement age”, he added.