Worryingly, more than a third of people (36 per cent) don’t believe that the credit crunch will affect them, in spite of all the talk of the housing market downturn, the difficulties of obtaining credit and the rising cost of living.
The survey also reveals that in the current economic climate, more than half of respondents (52 per cent) still consider property to be a good investment. Surprisingly, those living in London (57 per cent) considered this investment to be very important despite it being one of the most expensive regions in the UK. Confidence is also high in Scotland, with 55 per cent of Scottish respondents believing that property is still a good investment. But confidence fell to 50 per cent in Yorkshire and was lowest in East Anglia, with less than half (43 per cent) feeling this way.
Those surveyed that are married/widowed state that in spite of the credit crunch, owning a home remained a top priority and regular holidays (more than once a year) is their lowest priority. In contrast, for the singletons out there, nearly half (45 per cent) consider that being debt free with no credit card debts or overdrafts is the top priority and purchasing life insurance is their lowest priority, with regular holidays coming in at a close second.
In addition, the survey indicates that the saving priorities differ between men and women. A higher percentage of women (48 per cent), compared to men (38 per cent), state that savings is a very important priority; whilst men score a higher percentage (45 per cent) than women (36 per cent) for saving in a pension plan. It may be that women worry about short term finances and saving for a rainy day, contrary to men who appear to be thinking ahead.
Unsurprisingly, the survey revealed that the highest priority for 18 to 24 year olds is to own a car. However, the second highest priority for this group is to be debt-free with 38 per cent stating that having no credit cards or overdrafts is their top priority. For those approaching mid life (45 to 54 years old) their main priority is to own their own home, followed by owning a car and then having a pension plan. Their least important priority is life insurance, followed closely by regular holidays at just 31 per cent. Those in their later years (aged 55 and over) who were interviewed responded that their main priority is owning their own home at 70 per cent and being debt free is tied as their second highest priority along with having savings.
Tony Solomon, business development director, Zurich UK Life, commented: “It is worrying to find that less than a third of people have reviewed their finances in light of the credit crunch. With the credit crunch bringing spiralling living costs, from fuel to food to interest rates, families are seeing their budgets stretched to the limit. It is crucial for people to do something positive such as seeking advice and reviewing their finances to ensure their money is working as hard as possible to meet their future needs.
“Additionally, we strongly urge young people to reassess their financial priorities. Saving a small amount, as early as possible, on a regular basis, could make a huge impact on their finances in the future.”
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