Consumer confidence was high going into the New Year, according to research undertaken by Irish Life and Permanent in December.
34% of adults said that they expected they and their families would be better off in 2005 than 2004 with just 12% feeling that they would be worse off.
Dervla Tomlin, Head of Marketing with Irish Life told a press briefing today, that Irish Life would continue to focus strongly on the pensions market. She called on the Government to create greater awareness of the need to provide now for retirement.
The Government was urged to facilitate the investment of SSIA lump sums into pension schemes. Research undertaken by Irish Life in December showed that 41% of adults said they would invest their SSIA lump sum in a pension scheme if the Government introduced a special tax incentive for them to do so.
Ms Tomlin said that consumers remained keen on regular saving. 28% of adults indicated that they are likely to save more money in 2005 than 2004 with 46% likely to save the same amount in 2005.
Meanwhile, Eugene Kiernan of Irish Life Investment Managers told the IL&P briefing that he was anticipating 'slower but more balanced growth' for the global economy with inflation remaining in the 'comfort zone', and any interest rate movements 'measured and mild'.
Kiernan said that inflation, consumer confidence, exchequer figures and activity levels were well positioned for another year of strong growth.
He predicted GDP growth of 5% for the Irish economy in 2005, outperforming the 3.6% predicted for the global economy and very significantly ahead of the 1.8% predicted for the European economy.
He cited oil prices, currency volatility, Alan Greenspan's successor at the US Federal Reserve and the UK general election as well as the development of China as the main risks to the Irish economy this year.
The economist said he was predicting that euro zone interest rates would stay at 2% for much of the year, that rate rises in the US will be measured and that the UK may be at the end of its series of rate hikes.
The Irish Life and Permanent briefing also heard that Permanent TSB would focus on growing market share in the current account and credit card markets in 2005. Major project launches will take place in both sectors in the coming weeks.
Niall O'Grady, Head of Marketing in Permanent TSB, revealed that the bank had grown its market share in the current account market from 9% to 11% between June 2003 and June 2004.
He said the bank expected the rate of switching to dramatically increase this year with the launch of the Irish Bankers Federation code of practice to eliminate the key barriers to switching current accounts.
O'Grady said the bank was predicting house price growth of between 5% and 7% for 2005, down slightly on the rate of growth of just under 10% expected for 2004.
