Irish households saved €1 in every €8 of household disposable income over the first three months of 2026, according to data released by the Central Statistics Office on Friday. Before adjusting for inflation, that amounted to €6.6 billion. The household saving rate averaged at 12.5 per cent, up from the 11.7 per cent saving rate noted in the final quarter of 2025 and close to the average of 12.7 per cent recorded since the start of 2023. “Many Irish households continue to demonstrate a strong ability to save, which is good news,” said Noel Freeley, chief executive of Royal London Ireland. “But saving and building long-term wealth are not the same thing and bridging that gap remains one of the biggest financial challenges facing Irish households.”In the first few months of the year, households spent €41 billion on goods and services, down 4.5 per cent on the previous quarter largely because households traditionally spend more money closer to Christmas.Mark Manto, statistician in the national accounts analysis and globalisation division of the CSO, said: “The rise in the seasonally adjusted household saving rate from Q4 2025 was due to a greater increase in household disposable income than household final consumption.”From the end of 2025, Irish household incomes increased by 2 per cent, compared to the 1.1 per cent rise in household consumption.“Saving can add to a household’s overall wealth in the form of buying new homes, growing bank deposits, pension savings and paying off debt,” Manto added.The data comes as Tánaiste and Minister for Finance, Simon Harris says he plans to introduce tax efficient savings and investment accounts in the next budget to encourage people to move some of the €170 billion currently held on deposit with Irish banks at little or no interest.“At present, savers in Ireland hold €171.3 billion in deposit accounts, earning next to nothing. Many households could be releasing billions in wealth by engaging more actively with investment markets,” Royal London’s Freeley said.An Ibec survey earlier this week found that only 16 per cent of Irish adults invest in shares, despite Ireland having some of the highest rates of saving in Europe. “Yesterday’s ECB [European Central Bank] decision to increase rates means the landscape is shifting,” said Sarah McGurrin, head of employee benefits at NFP Ireland. “With inflation still pushing up everyday costs, it’s more important than ever for Irish households to manage their finances carefully.“For many families, that means keeping a close eye on cash flow, maintaining an emergency fund and balancing day-to-day spending with longer-term savings and pension planning,” she said. “While households can’t control inflation or interest rates, consistent saving habits can provide vital financial security when economic conditions change.”