Will 'double-dip fears' prompt rethink of long term care plans?

Posted on 10 August 2011

One in four Brits anticipate that the UK will suffer a double-dip recession, which could prove damaging to some savers' long term care plans.

Some 43 per cent of Brits believe that the UK could suffer a double dip recession, according to research by Fidelity International, while 35 per cent believe that there is no safe haven for savings and other investments in the current economic climate.

The recent market volatility has already seen thousands of UK savers changing their investment strategy.

Almost 30 per cent have switched to less risky assets, according to the fund management firm, while others are considering reinvesting money in the gold markets to secure their future.

Fidelity International investment director Tom Stevenson explained: "Savers are clearly feeling very pessimistic about the outlook for both the UK economy and savings.

"Although markets may take many months to fully heal after the recent volatility, it is encouraging that investors also recognise that there are opportunities in both the UK and emerging markets."

Last week, savers found out they will need to wait even longer for an increase in the base rate, after the Bank of England committed to maintain rates at 0.5 per cent for another month.  

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