20th August 2015
One in three of those aged 50 or more have dived into the stockmarket and bought shares in a company in a bid to help them boost their income in retirement, according to new research from Saga Share Direct.
The analysis found that other common reasons the over 50s buy and sell shares is to give them a regular source of income and because they think they will get a higher return by investing in shares than if they leave their money in a savings account.
However, some over 50s consider keeping a close eye on the FTSE 100 as a hobby while others said they bought shares because they like numbers and because trading stocks helps keep them mentally active.
Saga estimates that around 11m 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.
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, said: “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 some risks involved with share dealing so they should always do their research before they start investing their money.”