West Lancashire MP Rosie Cooper has welcomed the FSCS’ investment protection explainer video and Pension Protection Checker tool to guide consumers on how to check if their products are FSCS protected.
Following research from the Financial Services Compensation Scheme (FSCS) exploring the financial attitudes and behaviours of retirees, West Lancashire MP Rosie Cooper has welcomed FSCS’s launch of a new Pension Protection Checker tool, which provides useful information and questions to ask their providers. Meanwhile more information about FSCS investment protection limits, including a protection explainer video, can be found on the FSCS website.
FSCS’s research found that one in five (20%) retirees have considered riskier pensions and investments products, as they offer a higher rate of interest. The research – conducted among retirees between the age of 55 and 75 – found that the UK’s prolonged low interest savings environment has had a direct impact on retirees’ financial decisions, tempting them to review high interest investment products that they would not usually consider.
Surprisingly, by comparison, just 12% of retirees said they have taken advice from an Independent Financial Adviser (IFA) to see how they can make their money go further.
More than a third (36%) of consumers have invested their money after retiring. Although the majority (69%) of those investing said they knew all their investments were FSCS protected, only 36% of investors knew the exact amount of FSCS protection available for their money.
This means they could unknowingly be investing money in investment products beyond FSCS’s compensation limit, which would likely be lost if the provider went out of business.
This riskier attitude to investing highlights just how important it is for consumers to check if new or existing pensions and investments products are FSCS protected.
West Lancashire MP Rosie Cooper said:
“I welcome the launch of FSCS’s new Pension Protection Checker and would encourage all residents in West Lancashire to check their protection before making financial choices to ensure they are protected.”
Lila Pleban, FSCS’s Chief Communications Officer, said:
“We are seeing increasing numbers of customers seeking compensation from FSCS due to failed pension and investment products, or poor advice.
“For peace of mind, consumers should always check that new or existing pensions and investments products are FSCS protected. Our website, www.fscs.org.uk, offers guidance on how to check for FSCS protection, including our new Pension Protection Checker tool and investment protection explainer video.”