Debt, no savings and running out of cash before payday: what it's like living on less than €44k

A PUBLIC SERVICE worker who earns €38,800 annually said that she and her family have begun applying for jobs abroad due to their inability to afford the lives they want in Ireland.

Despite both she and her partner being highly educated and working full-time, they struggle to make ends meet, let alone save.

Simon Harris, finance minister, has repeatedly nodded to the “squeezed middle” while discussing this year’s budget – which he said will support people who “get up early every morning and go to work”, but earn too much to access state supports.

However, many of our readers said that although they wake up early every day, they feel like the section of middle-income workers who are earning under €44,000 are likely to be ignored in the upcoming budget.

The government has heavily hinted that the point at which a person enters the highest tax band, which currently stands at €44,000, will increase in the budget. But, with the most recent data from the Central Statistics Office showing that the median annual income in Ireland was €44,816 in 2024, many workers won’t benefit from the change.

We asked our readers who earn less than €44,000 and won’t benefit from promised tax changes about their experiences, and what they want from the budget. 

They said they don’t have the discretionary funds required to save into Harris’s promised investment scheme, nor will they benefit from tax cuts on inheritance or a higher tax band increase.

Thank you to the many readers who shared their stories. Here’s what you told us.

Running out by the end of the month

The public service worker on €38,800 said that, at the moment, her family’s dream of raising a happy child in a nice home and going on holidays feels “unattainable”.

She added: “There is not a day that goes by where our finances aren’t mentioned to each other in some way”.

Parents, pensioners and workers of all ages from across the country told us they struggle while trying to live on salaries below €44,000.

Feeling negative about the future due to the inability to save was a common theme among readers, with many saying any spare funds go toward paying off debt.

A 30-year-old worker earning €41,000 and renting a room in a Dublin house share said that she thought she would be closer to her goal of getting a mortgage by this stage of her life.

Instead, she said she has no savings and is paying off some “sizeable” credit card debt from her college years.

Several people said they ran out of money before the end of the month, and either went without or got loans.

A clerical officer earning €33,000 annually said she qualifies for no supports, has no savings or money available for saving or personal spending and relies on loans to make any large necessary purchases.

Meanwhile, a worker who takes home over €3,000 monthly said she “constantly struggles” and sometimes has to borrow from her parents to get by, despite living a “basic life” and not splurging. 

Pensioners

Several people who have worked for decades and are now relying on the pension said that financial worries are a daily experience.

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A 67-year-old retired health worker from Mayo with an income of €42,000 from her private pension said that though she suffers from health issues, she fears she may have to cancel her health insurance by January.

She said costs associated with heating her 30-year-old house drain her funds yearly, but she isn’t eligible for any retrofitting grants, so she goes to bed early to avoid turning on the heat.

Subscriptions, holidays, savings and giving gifts at Christmas and birthdays are all things she said she has had to stop.

“I know it’s external pressures that have caused the crisis. There is definitely price gouging in all sectors. I don’t believe the government is responsible to maintain my standard of living, but it should do something to meet me and others like me halfway. I worked long enough, paid tax and still pay tax,” she said.

What people on less than €44,000 hope to see in the budget

Our readers have called for a range of government measures to better support them, including policies specifically targeting those earning between €30,000 and €44,000.

They called for an increase in personal tax and Pay As You Earn (PAYE) credits, which would directly reduce the amount of income tax paid. The government is expected to increase tax credits in this year’s budget.

They also called for the abolition of the Universal Social Charge (USC) – an income tax introduced during the financial crash which the government previously said they will “look at” lowering. Government parties have said there will be no abolition of the USC in full, but there could be minor changes to ensure those on lower incomes are less impacted.

Several readers said introducing targeted supports specifically for those earning €44,000 or under would make a difference in their lives, with many calling for energy credits.

The government included one-off energy credits in previous budgets, amounting to €600 for 2023 and €250 for both 2024 and 2025. However, it has consistently said they want to move away from ad-hoc, temporary measures, though the Taoiseach has said, in the midst of the energy crisis, everything is on the table. 

Other readers highlighted the importance of the government’s rental tax credit – which looks set to be further increased – and called for the widening of thresholds for other housing supports, such as Housing Assistance Payment.

Readers also called for a reduction in public transport fees, which are to increase by an average of 15% next year.

A 33-year-old based in Dublin told The Journal that he feels workers who earn too much to qualify for state supports, but must decide between putting diesel in the car or visiting a GP, are “overlooked” by the government when it comes to the budget.

He said this group cannot keep up with the cost-of-living crisis, no matter how hard they work. He said: “Those are the ones who struggle in an unseen way.”

The man said that though he works six days each week and his wife also works full-time, they are worried about starting a family due to financial concerns around childcare.

He said his wife was recently diagnosed with a benign brain tumour, and they are waiting to find out if it is operable. But if it is, he said any relief will be underscored by panic around the financial impact of his wife being out of work during her recovery period.

“You tell me what kind of life of contentment that is? Working for the end of the week just to spend about 24 hours of free time then back to the start again of this relentless cycle.” 

For some, the governments’ promises of looking out for those who wake up early ring empty. 

“I earn €40,000 a year and I, for one, am sick of Simon Harris saying the ‘squeezed middle’ and those who ‘wake up early in the morning’ will benefit the most in this budget,” David (33), from Waterford, said.

David said that although he wakes up for work every morning at 5am, he thinks the budget will most benefit those on higher wages who already have excess funds. 

“Why is it that each budget those with higher pay are the ones who see the most benefit while those on below-higher bands see little to no benefit, but we are the ones most squeezed?”