Euro collapse in 2013 remains a financial concern

With the news that France has entered recession, British adults have shared their own financial fears for the future of the Eurozone. One in seven people (13%) say their biggest economic concern is the collapse of the euro this year and its subsequent effect on the UK, according to a study from Towry, the wealth adviser.

Fears of fallout from recession in France

Andrew Wilson, head of investment, Towry said: “It is clear that factors such as the euro are significant concerns for British adults. With France entering its second recession in four years, along with the recent troubles for the likes of Cyprus and Italy, the date that an electorate chooses to leave the Eurozone is being brought ever closer, for better or for worse. There are fears about the knock-on effect that economic difficulties present to an individual’s personal financial circumstances.

“There remains much political will behind keeping the Eurozone together, but there will be much more pain to come with other countries requiring write-downs on its debt.”

Concerns about spending habit changes

The study has also shown that just under a third (32%) of British adults said that the UK going back into recession would force them to change their spending habits – a figure that rises to 36% of adults aged 40 or above.

One in five British adults (21%) say an inflation hike would most likely force them to modify their outgoings, while a similar number (18%) feel a rise in interest rates would be the biggest factor.

Interestingly, one in twenty (4%) feel that being auto-enrolled into a pension scheme will most likely force their spending habits to change.

Andrew Wilson added: “Given these concerns over the nation’s economy, it is critical for individuals to plan for their financial futures and continually evaluate these plans to ensure that they are well provided for irrespective of economic pressures.”

Towry offers a range of investment management services to its clients. It also provides personal financial advice including help with retirement planning, pensions and inheritance tax for private individuals, families and trustees.