Other common reasons the over-50s buy and sell shares are to give them a regular source of income (21%) and because they think they will get a higher return by investing in shares than if they leave their money in a savings account (62%).
However, it’s not all about the money as some over-50s consider keeping a close eye on the FTSE 100 a hobby (7%). And some people say they have bought shares because they like numbers and because trading shares helps keep them mentally active.
Read our guide to investing in the stock market…
Inheriting and receiving shares
Saga estimates that around 11 million over-50s own shares but not everyone has bought them. One in 13 people have inherited them from a family member and kept them and the same number of people said they acquired the shares they own through a generous employer.
Read more about what to do if you inherit shares...
Do your research
It appears the older you get the more likely you are to own shares as almost three fifths of people aged 80 to 89 said they have bought shares over their lifetime.
Jeff Bromage, Chief Operating Officer at Saga Personal Finance, commented: “These days’ lots of people are worried about making their money last in retirement and now that people are able to take their pension as a lump sum I wouldn’t be surprised if we see more people start trading to help boost their income.
“However, people should remember that there are risks involved with share dealing so they should always do their research before they start investing their money.”
Don’t get caught out? Read Annie Shaw’s guide to avoiding investment mistakes.
Are you aged 50 or over and considering share dealing to help fund your retirement? Saga Share Direct, provided by Equiniti Financial Services Limited, allows you to buy and sell a range of UK shares and funds with competitive pricing and no annual account management fees. Some investment types may have their own fees.
Shares are high‐risk investments. Share prices and the income from them can fall as well as rise and you may not get back the full amount invested. Saga Share Direct does not offer advice. If you are unsure whether this service is suitable for you, please consult a financial adviser.
The opinions expressed are those of the author and are not held by Saga unless specifically stated.
The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.