While many people have dabbled with investing in the stock market or have invested in funds by the time they reach 50, almost one in five have only ever put their money in cash savings.
But this may be about to change, according to research by Saga Investment Services.
According the survey, the drop in the Bank of England base rate in August has made Britain’s over 50s start to think differently about the way they save in order to make their money work hard for them in the run up to and throughout retirement, with 54% agreeing that the rate change will impact them in some way.
Read Annie Shaw's guide to common investment mistakes
Will you face a loss of income?
As many people over 50 are heavily reliant on interest from their savings to boost their monthly income, more than half say they are facing a loss of income due to the cut to the base rate, which is no doubt prompting them to rethink their options.
Some even say that they will have to cut back on their spending due to the impact on their monthly budget.
Seven ways to save money at the supermarket
Of those who have only ever invested in cash, almost a quarter say that they are now starting to think about investing in something other than cash for the first time and a third of over 50s overall say they are thinking of putting more of their cash savings into some form of investment in order to secure higher returns.
Are you ready to change the way you save?
Whilst all age groups of people over 50 are affected by the change, it is those in their fifties who are most likely to be turning away from cash for the first time (30%); this is also the age group least likely to have invested in shares before.
How to invest in the stock market
The survey also reveals that people feel they need advice in order to find the best home for their money. One in four say they would like to take some of their cash savings and invest in something else, but they don’t really know where to start. Women are more likely to say they would need advice (33%) than men (25%).
A word from the expert
Nici Audhlam-Gardiner, managing director of Saga Investment Services, commented: “As people approach retirement and beyond, it is clear that they want to make their money work harder for them so that they can continue to enjoy living life to the full. We are seeing a real shift in people who are considering moving more of their cash to investments.
“While some over 50s are sophisticated investors and happy to make their own decisions, others are returning to investment or dipping their toe in the water for the first time. They are telling us they would like some help to navigate their way to the most appropriate investment for them.
"They should ensure they speak to an expert who will take into account their appetite for risk and time horizon for investing, rather than opting for whatever offers the highest return.”
About Saga Investment Services
Saga Investment Services has been developed to open up the world of investing
and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible.
Find out more