More than a third of Irish adults struggle to grasp basic financial concepts, rising to almost 70 per cent of those aged 18 to 24, a survey suggests.

The survey of 1,000 adults on their understanding of topics, including pensions, tax relief, insurance and the State pension, found substantial gaps in people’s knowledge.

Although 65 per cent achieved a basic passing grade, only 3 per cent answered all nine questions correctly.

Just one in five men and one in eight women achieved an A or B grade. While the latter were slightly more likely to pass overall (66 per cent versus 63 per cent), men were more likely to achieve top grades, with 10 per cent scoring an A, compared to 6 per cent of women.

Commissioned by NFP Ireland, a financial services firm, the survey highlighted how financial knowledge increased with age, likely as people encounter decisions around mortgages, pensions and insurance firsthand.

A total of 68 per cent of 18 to 24-year-olds failed the test while no one in that age group achieved an A grade. By contrast, only a quarter of over-55s failed. Almost one in 10 over-45s scored top marks

“This isn’t school – people hadn’t prepared for this survey,” NFP’s Sarah McGurrin said.

“But the research is important in understanding where people are starting from in terms of financial literacy, and for taking action to ensure they have the tools and knowledge needed to make informed financial decisions, no matter their age or stage of life”.

She said although most people answered “a decent chunk of the questions correctly” the survey suggested that “financial confidence and clarity still feels out of reach for many, especially when it comes to products like pensions and protection”.

“This is something that shouldn’t be ignored – knowledge is power, and the lack of it can have serious consequences for people’s financial wellbeing,” Ms McGurrin said.

She said financial understanding should not be something people only gained through experience.

“Younger adults are making big choices too – from setting up pensions and managing loans to taking on one of the biggest financial contracts they’ll ever sign: a mortgage. And too many are doing so without a solid grounding. That’s something we can and should change,” Ms McGurrin said.

The survey included nine questions on practical, real-world financial topics. While some concepts were well understood, others caused confusion.

She said the level of confusion about financial products “underlines why employers and policymakers need to continue working to demystify financial language and bring education into real-world settings”.

“We don’t expect everyone to be financial experts,” Ms McGurrin said.

“But a basic foundation – the kind that helps you ask the right questions and avoid costly mistakes – should be accessible to everyone. Financial wellbeing starts with financial confidence.”