Sunday, July 16, 2017

Good and bad news about how older people use their pensions

This report from the Financial Conduct Authority is the most authoritative research I have seen about what older consumers do when they reach the age they can access their pension savings (that is 55 years old in the UK).

The good news is that it seems they are trying to be sensible and not blow the money on a Lamborghini (the purchase most often quoted by the media).

The bad news is that many of them (40%) made this financial decision without taking any advice. This is not because they are ultra bright and don't need professional advice - the exact opposite.

What it shows is the financial illiteracy of many older people (same applies to their kids and grandchildren). In the past the Financial Services Industry saw the ignorance of their customers as benefit but now it is under so much scrutiny it has become a problem. Dick Stroud

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