'Keeping up with the Jones' an Irish preoccupation, according to three-quarters of Irish earners

- 79% believe that we're not really a wealthy nation - we are merely obsessed with the trappings of wealth

Consumers in their 30s and 40s, dubbed the 'Living Economy', are a nation divided against themselves, according to a new study by Bank of Ireland Life released today (Thursday, November 29th). Making up half of the working population, the 'Living Economy' tend to spend more time comparing their earnings and lifestyle against others instead of properly managing their money to achieve their personal goals.

The 'Living Economy' seems to have its priorities right, yet they lack the confidence and knowledge to put their priorities into practice. 95% say that not having to worry about money in the future is valued more than flashy consumption like wearing designer gear or driving a new car. Underneath it all 79% believe that we're not really a wealthy nation - that we are in fact, merely obsessed with the trappings of wealth.

Key findings of the study illustrate the need for those in their 30s and 40s to take greater control of their money:
Fact: 64% of couples would like to plan ahead more with their finances while 92% think it is important to have money set aside for a rainy day.
And yet... When offered access to €5,000 now or €8,000 in three years - 71% chose the option of €5,000 now.
Fact: 73% admit they often compare their own lifestyle to others
And yet... the majority agreed that money doesn't buy happiness.

Differences in attitude were also evident between genders including:

Interestingly at this time of the year, the only time those in their 30s and 40s splurge is with their Christmas bonus, which is treated differently to bonuses received at other times of the year.
"The theory of mental accounting describes how people see different functions for money depending on where it comes from. Splurging the Christmas bonus on the festive season is a good example of this. What is worrying however, is the fact that a further 1 in 3 people seem to do nothing special with the annual bonus they work so hard to achieve," explained Dr. Ken McKenzie, Social Psychologist with the Geary Institute, UCD.

"Unfortunately this style of passive management does nothing to help the 9 in 10 people in their 30's and 40's achieve their goal of setting a sum of money aside for a rainy day. Taking ownership for their money instead of letting it 'own' them is key, greater ownership translates into active management, which will result in greater achievement of financial goal," he said.

Access to funds is the biggest barrier to take-up of investments for the 'Living Economy', this coupled with the myth that investments are only for the wealthy are the focus of Bank of Ireland's upcoming investments campaign. According to Bernard Walsh, Head of Investments, Bank of Ireland Life, "The experience of the SSIA scheme taught many that stockmarket related investments do outperform deposits over time. However not all investments are like the SSIA scheme which imposed penalties on those who wanted to access their cash before the end of the five-year term."

"The 'Living Economy' is upwardly mobile and enjoying the success of the Irish economy. However this relatively new prosperity has created some gaps between those who are financially savvy making their money work for them, and those who want to plan more for their future but lack the knowledge and confidence to do this. Bank of Ireland Life are encouraging those in their 30s and 40s to 'own' their financial future by making it their most important New Year's resolution in 2008."

ENDS

Notes to Editors:
Research conducted by W5 Marketing Intelligence in October 2007 with a nationally representative sample of over 500 people aged between 30 - 50 years.

For further information contact:
Laura Erskine
Public Relations Manager
Bank of Ireland Life
Ph. 01 617 2586
Mob. 086 856 2929

Audra Dutton
Group Consumer Communications
Bank of Ireland
Ph. 01 604 3750
Mob. 086 818 3932