Over 50s predict stocks and shares will give more bang for their buck in 2010

Monday 11 January 2010

Over 50s predict stocks and shares will give more bang for their buck in 2010

  • Men are more optimistic about future of the economy than women
  • A quarter believe base rate will double to 1% in 2010
  • Stocks and shares predicted to offer biggest financial returns

A new study* from Saga Share Direct today reveals that almost a third (31%) of over-50s believe the recession will continue into 2011. Only one in ten (12%) believe the worst will be over in the first three months of this year, with men three times as likely to think this as women (16% vs 5%).

It seems that financially savvy over-50s will be pitting their wits against the stock market in 2010 to make a profit, as two fifths (40%) believe that investing in shares will offer the biggest financial returns. Interestingly, women (31%) are much less confident about the stock market than men (46%). A quarter (24%) of over 50s think that the FTSE 100 will remain at its current position of between 5000 and 5500 by the end of 2010, 41% believe it will be trading between 5501 and 6000.

Women are as likely to put their faith in the housing market as stocks and shares, a third (32%) predict property will offer the best return, despite the recent volatility in property prices. Little is expected from savings accounts - only 6% of over 50s expect these to give good financial returns over the next 12 months.

With the base rate at an all time low, the study found that over a fifth (21%) of over-50s expect it to double in the next year to 1%. A further one in ten (11%) expect interest rates to rise fourfold to 2%, which would significantly affect many people’s mortgage and savings accounts.

Andrew Goodsell, Executive Chairman, Saga Group, said: “Whatever the Government says, the research clearly shows that a large number of over 50s believe the recession is far from over. Despite the difficult investment environment, successful stock picking could prove a key method of increasing funds this year.”

With people predicting that high returns will be hard to come by in 2010, they should do all they can to make sure that their money is working as hard as possible by ensuring they avoid paying tax or charges where possible. That’s why the Saga Stocks and Shares ISA is such a good proposition. There are no annual fees, shares can be traded from as little as £9.75 and there are over 700 funds to choose from with a minimum initial charge of just 1.5%.

For more information about Saga Share Direct, please call 0800 559 3196 or visit saga.co.uk/money-shop


Notes to Editors

* Populus research carried out online on behalf of Saga amongst 17, 065 British adults aged 50+ between 13th and 20th November 2009.

About Saga Share Direct

Saga Share Direct customers, enjoy a wide range of benefits as well as extremely competitive low costs, and a choice of how to trade – by post, by phone or online. Here’s a summary of the benefits of our service:

· No account management fees

· No inactivity fees

· Competitive dealing rates and even lower rates for frequent traders (trade from as little as £9.75 per online trade when you conduct 10 or more trades per quarter)

· UK only call centres

· Access to our free online research centre

· Access to our online Education Centre to help you understand how the stock market works

· Free ‘stop’ and ‘limit’ order facilities – giving you complete control over your investments

· Stocks and Shares ISA – a tax efficient Individual Savings Account allowing you to invest up to £10,200 each tax year – with no annual account administration charges

· Access to over 700 funds with a maximum initial charge of just 1.5%

· Deal in UK shares, gilts, bonds, ETFs and funds.

Saga Share Direct is an 'execution-only' service, which means we do not offer advice. 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. Past performance should not be taken as an indication of future returns. This service is not suitable for everyone. If you have any doubt whether it is suitable for you, you should obtain expert advice.

Saga Share Direct is a registered trading name of Saga Personal Finance Limited, which is authorised and regulated by the Financial Services Authority. Saga Personal Finance Limited is registered in England and Wales (Company No: 3023493) and is a wholly owned subsidiary of Saga Group Limited. Registered Office: Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE. The Saga Share Direct service is operated for Saga Personal Finance Limited by Barclays Stockbrokers Limited (BSL), which is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange and PLUS. Barclays Stockbrokers Limited is registered in England (Company No: 1986161). Registered Office: 1 Churchill Place, London, E14 5HP.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

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