Most believe worse to come in financial crisis

Most people do not believe the worst of the financial crisis is over, according to a report issued today.

Standard Life’s quarterly survey of more than 1,000 adults found that 64% of those surveyed believe the situation will get worse before it gets better.

Almost one in four (24%) believes it is over, while 12% don’t know.

When respondents were asked how financially confident they felt, the Standard Life Financial Confidence Index fell to a new, two-year low of 52.9. This represents a drop of 13.8 points from the high of 66.7, reached in March 2008.

“This new financial confidence low is not surprising given peoples’ belief that the financial crisis isn’t yet over”, said Brendan Barr, head of marketing with Standard Life.

“People are also worried about debts, property values and their jobs.”

The survey also found:

One in three (33%) are worried about their capacity to repay their debt with 22% quite worried and 11% extremely worried.

Four out of 10 people (42%) believe their home will be worth less in 12 months time.

More than a quarter, (27%) believe their job/business prospects will be less secure in 12 months time.

While financial confidence has hit a new low, investor sentiment appears more positive.

“Respondents’ faith in investments such as shares, pensions and managed/equity funds appears to have turned a corner, following a general decline since June 2007,” said Barr.

“We’re hoping that financial confidence may have bottomed here – but a lot depends on the outlook for the economy and job prospects in the second half of the year.”