A study by Goodbody Stockbrokers predicts that Special Savings Incentive Accounts or SSIAs will inject some €14 billion into the economy when they mature.
The study estimates that the scheme will boost economic growth by almost 2% in 2006. The average payout from the accounts will be just over €13,600, according to the study.
€14 billion will be released into the economy over a 12-month period from May 2006 to April of 2007. As many people left it until the last minute to take out an SSIA, 42% of accounts or €6 billion will be released in April 2007 alone.
An opinion poll carried out by Goodbody estimates that €5.2 billion or 37% of the money in SSIA accounts will be spent with the remainder being invested.
The biggest investment is expected to be in property. This massive injection of money into the economy is likely to boost economic growth from a forecast 4.8% to 6.7% in 2006.
The study also finds that 45% of the accounts are held by people earning less than €20,000 a year. The average account holder is 40 years old.
They are expected to spend €1.6bn on holidays, €1.1bn on car sales and €1.3bn on home improvements.