So far Britain has managed to escape the majority of the impact, but as the ground continues to become more and more unsteady for the euro, we’re sure to feel the effects in the coming months.
But how will this affect you personally? Will it change your chances of getting your ideal career? Your dream house? A pension to retire comfortably on?
Financial experts have grouped together to predict exactly how the eurozone crisis is expected to affect the lives of people living in Britain.
Here are four ways the crisis could change your life:
1. Buying a house
For first-time buyers, buying a house will require an upfront deposit of about 20% of the value of the home they wish to buy, simply due to the fact that banks are so unwilling to lend. Because very few young people have £10-20k lying about, inevitably the number of people able to buy their own property will drop while rentals rise…along with the cost of renting.
2. Your pension
In the midst of the sea of economic chaos, Britain is currently something of an island, a safe-haven for investors. Pension funds are being used to buy government bonds. If the cost of bonds rise and the returns fall, then pension funds could disappear rapidly. This could result in a panic shut-down as companies close their final-salary pensions to new and existing staff.
3. Your job
Most of the UK’s exports go to Europe (47%). Because Europe can no longer afford to buy imports from the UK, the UK is set to lose its biggest customer. With less demand for British goods, there will be less demand for British labour, meaning less jobs – especially in manufacturing. The resulting lack of confidence among businesses means many are staying safe and refusing to make changes. There will be a noticeable lull in new investment and job opportunities in the future, which will effect young people the most.
4. Your European get-aways
At last, some vaguely good news. The pound will currently buy more euros than it has done at any point over the last three years. As the euro weakens, the pound will recover its value (lost in 2008) and British pensioners living part-time in Europe will benefit from the fact that their salary is paid in sterling.
For more financial information and to find out how an accountant could help you save money as well as organise your life, please visit Accounting Areas.
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