Exactly 10 years on from the first major tremor of the global financial crisis, a survey has revealed trust in the government and the financial services industry is even lower than before the crash.
A decade ago, former Federal Reserve chairman Ben Bernanke warned sub-prime lending failures could cost $100bn, sending shockwaves through the market.
But even now, with the recovery well underway, a survey by fixed rate bond provider Minerva Lending shows that more than half (55 per cent) of active UK investors trust the traditional financial services industry less today than they did before.
“There is still a widespread disillusionment among active UK investors with the government and the traditional financial services industry,” said Ross Andrews, director at Minerva Lending.
“With people living longer and the ability of the government to look after everyone in retirement under growing pressure, it is more important than ever for people to have confidence in the financial services industry and any state support they are offered.”
Two thirds of respondents to Minerva Lending's survey said they felt “let down” by the government on the subject of retirement, as it had failed to safeguard their financial futures.
Meanwhile, 39 per cent said they were concerned the government wouldn't be able to take care of them in retirement, while 48 per cent were worried they would not have enough money to fund their preferred lifestyles.
The government yesterday announced raises in the state pension age would be brought forward, while the amount a person can save in a pension scheme without incurring extra tax costs is falling.
Meanwhile the government is undertaking a Patient Capital Review, due to be published imminently, exploring barriers that investors may face in providing long-term finance to businesses.
This may include an investigation into the uptake of tax efficient investment vehicles such as Venture Capital Trusts (VCTs).