# Deluded? Impossible! More towards ignorant.



## Max Hopper (1 Dec 2004)

Or they might _just_ win the Lotto.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Yet another snippet from today's Indo -<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->*Irish are 'deluded' about their finances*<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->THE number of credit card holders almost doubled in the past two years, to 48pc of the population, up from 27pc, according to a survey published yesterday.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->The survey also found that one in five are now spending beyond their comfort level.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Strikingly, 23pc of the 1,000 respondents to the Royal Liver Assurance survey said that they had a portable pension (PRSA), although just 1pc of the general population does.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Royal Liver echoes other recent surveys in finding inadequate pension provision - one for Standard Life, disclosed exclusively to the Irish Independent early this week, and another last month by EBS.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->So deluded are Irish people about their finances, Royal Liver suggests, that has it coined the acronym 'Feathers' for what it identifies as an emerging market segment: Financially Empowered Adults Trying Hard to Evade Responsibility.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Most (73pc) of the 1,000 respondents to Royal Liver prefer spending their money on immediate gratification rather than investment, Royal Liver discovered. This also echoed a Deloitte survey in recent days which found that Irish people will spend more than other Europeans this Christmas.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Over half of Royal Liver's respondents are saving no more now than they did five years ago, when they earned less. "People in Ireland definitely think they are more secure financially than they are. There are huge contradictions," said Patricia Hyland, director of distribution in Ireland for Royal Liver.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Among the contradictions: 90pc of respondents expect at least one child to attend university, but 31pc have made no financial provision for third-level education, and most estimate its cost at about half of the likely cost of €60,000.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Another contradiction: 81pc rated serious illness cover as "necessary" but just 1.8pc have it.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Perhaps particularly 'Irish' - many see property investment as an alternative to a pension, with 33pc of respondents rating property investment as the best use of a disposable €20,000, versus just 7pc who would put such a lump sum in a pension fund.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Royal Liver, which is best known as a door-to-door seller of protection policies, said it aims to broaden into other products and cross-sell to the middle market, ie, those with €20,000 to €75,000 in annual household income.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->*Orla O'Sullivan*<!--EZCODE BR START--><!--EZCODE BR END-->© Copyright Unison.ie​


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## ClubMan (1 Dec 2004)

*Strikingly, 23pc of the 1,000 respondents to the Royal Liver Assurance survey said that they had a portable pension (PRSA), although just 1pc of the general population does.*

If the sample was selected on a statistically sound basis then surely it should correlate to the mean within some margin of error? If the survey said 23% but the actual real figure is 1% then there must be something wrong and it surely casts doubt on any other results? How was the sample selected? Existing customers of _Royal Liver_ perhaps?  If so then perhaps this ...

*So deluded are Irish people about their finances, Royal Liver suggests*

... translates into "our customers are morons"? :\


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## Max Hopper (1 Dec 2004)

First point , is not to *assume* that the respondents were LR policyholders.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Second point is not to *assume* that the respondents knew what the acronym PRSA meant.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->And the final point is that the LR results are not a one-off example of the delusional effect that real estate has on the country.


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## Elcato (1 Dec 2004)

I don't have a PRSA but I do have a pension that I can bring from one company to another - that would be my understanding of a portable pension. This would explain any discrepancy. I think the article writer is the one who made the wrong assumption here ? Why did she mention a portable pension rather than a PRSA ?


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## ClubMan (1 Dec 2004)

*I think the article writer is the one who made the wrong assumption here ? Why did she mention a portable pension rather than a PRSA ?*

Perhaps they were just parroting what was in the original press release, er, sorry, survey. I went looking for it but was unable to find it but did notice that _Royal Liver_ seem to very prolific with the old [broken link removed].


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## sol (2 Dec 2004)

*..*

What!!! Life and pensions compaies telling us that we dont have enough cover!!! Whatever next?  The sky is falling in!


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## punter2005 (9 Dec 2004)

*Re: ..*



> So deluded are Irish people about their finances, Royal Liver suggests, that has it coined the acronym 'Feathers' for what it identifies as an emerging market segment: Financially Empowered Adults Trying Hard to Evade Responsibility.




This sounds remarkably like the Insurance rep who tried to flog me an overpriced and unnecessary AVC. 



> Among the contradictions: 90pc of respondents expect at least one child to attend university, but 31pc have made no financial provision for third-level education, and most estimate its cost at about half of the likely cost of €60,000.




€60,000? Hope my darling daughter doesn't read this. I don't think I spent anything near €6,000, not to mind €60,000, to send her to university. I did invest €6 in a top-notch timer for the immersion  

Flogging expensive Educational Funds perhaps?


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## Brendan Burgess (11 Dec 2004)

*Re: ..*

I "discussed" this survey with Bronagh McGee from Royal Liver on the Down to Business Show last Satuday.  I pointed out to her that this finding is also nonsense:



> THE number of credit card holders almost doubled in the past two years, to 48pc of the population, up from 27pc, according to a survey published yesterday.



I checked with the IBF and the numbers remained constant between 2002 and 2003. They haven't completed their figures for 2004, but there is no evidence yet of any significant increase.


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## ClubMan (11 Dec 2004)

*Re: ..*

_Brendan_ - I thought that you let her and others off the hook when they were talking about  when they actually meant tied agents/sales people! But at least you picked her up on her recommendation of a _With Profits_ investment to one of the show's listeners...


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## Rutigur (19 Jan 2005)

*Re: ..*

Is the 'Down to Business' show a regular show and, if so, what station is it on? Also, is Brendan a regular contributor to the show?


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## Repaymentator (20 Jan 2005)

*Re: ..*

It is a [broken link removed] on News Talk 106.


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