More than one in three adults fail basic financial literacy test
Survey highlights significant knowledge gaps among younger adults as Ireland enters 2026
Thursday 8th January 2026 | đŸ“§Â editor@ipropertyradio.com
More than one in three Irish adults do not have a basic level of financial literacy, according to new nationwide research, raising concerns about how prepared people are to make key financial decisions around pensions, insurance and long-term financial security.
The survey, commissioned by professional services firm NFP Ireland and carried out by iReach in August 2025, tested 1,000 adults on nine practical financial questions. Just 65% achieved a pass mark, while only 3% answered all questions correctly. The remaining 35% failed the test, meaning they answered fewer than half of the questions accurately.
The findings point to a strong link between age and financial knowledge. Among 18–24-year-olds, just 32% passed the test, while 68% failed. None of those in this youngest age group achieved a top grade. In contrast, 75% of those aged 55 and over passed, with almost one in ten adults over 45 scoring an A grade.
Overall results show that while most adults have some grasp of financial concepts, relatively few demonstrate high levels of understanding. Only 22% of men and 13% of women achieved an A or B grade. Women were slightly more likely to pass overall, with a 66% pass rate compared to 63% among men, but men were more likely to achieve top scores.
Regional differences also emerged. Munster residents recorded the highest pass rate at 68%, making them the most financially literate region in the survey. However, no region showed strong performance across all topics, particularly in more technical areas such as pension limits and insurance rules.
Several core financial concepts caused significant confusion. While 57% of respondents correctly identified Permanent Health Insurance as a policy that pays part of a salary if someone cannot work due to illness or injury, 43% answered incorrectly, including 20% who believed it was a form of life insurance. Similarly, although 65% understood that death in service benefits pay out when an employee dies while covered by the scheme, 17% thought the benefit only applies if the death occurs at work.
Understanding of group life insurance rules was particularly weak. Just 40% correctly identified the ‘four times salary’ rule as the maximum tax-free lump sum payable on death, while 30% believed it related to pension income calculations.
NFP Ireland said the results underline the need for better financial education, particularly for younger adults entering the workforce. While financial knowledge tends to increase as people encounter life events such as mortgages, pensions and insurance, the survey suggests many people are making major financial commitments without a solid grounding in the basics.
The research highlights ongoing challenges for consumers navigating complex financial products and terminology, and points to a wider need for clearer information and greater emphasis on financial education to support long-term financial wellbeing.
