With saving rates reaching historic lows over the last 12 months, research from the Financial Services Compensation Scheme (FSCS) has found that one in five (20%) retirees have considered riskier pensions and investments products as they offer a higher rate of interest.
According to the research, which was conducted among retirees between the age of 55 and 75, more than a third (36%) of consumers have invested their money after retiring. Of those investing, 69% said they knew all their investments were FSCS-protected, but just 36% knew the exact amount of FSCS protection available for their money, which the FSCS warns, could mean they are unknowingly investing money in products beyond the FSCS’s compensation limit.
One of the most surprising findings from the research is the fact that just 12% of retirees said they had taken advice from an independent financial adviser to see how they could make their money go further.
Ideally, when planning for retirement consumers should consider speaking to an independent financial adviser, especially if they are considering taking riskier pension investments options, as the adviser will be able to provide information and advice on what the best options are for the retiree’s individual circumstances. Our guide on how to get pension advice provides information on how to contact an independent financial adviser, including how to book a free consultation with independent advisers Kellands.
