Money News
Could the current economic climate, financial doom and gloom, be a myth? According to new research from life insurer Zurich, despite the testing market conditions, less than a third of consumers have reviewed their finances in light of the credit crunch (29%) and a fifth of people (21%) claim it's a term created by the media.
Worryingly, more than a third of people (36%) don't believe 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%) still consider property to be a good investment. Surprisingly, those living in London (57%), 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% of Scottish respondents believing that property is still a good investment. But confidence fell to 50% in Yorkshire and was lowest in East Anglia, with less than half (43%) 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%) 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%), compared to men (38%), state that savings is a very important priority; whilst men score a higher percentage (45%) than women (36%) 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% 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%.
Those in their later years (aged 55 and over) who were interviewed said their main priority is owning their own home (at 70%). Being debt free is their second highest priority along with having savings.
19 June 2008 © Moneyextra.com
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