I think too many people just opt out of taking responsibility for educating themselves on basic money issues and then complain when they get caught in scams or bad investments.

There was someone in one of the Sunday papers a few weeks ago. A successful businessman; he had accumulated cash assets of several millions of pounds. He then, took advice from a company that recommended a series of high risk high return investments and when they failed he invested more in similar schemes to try and recoup his losses and of course lost that money as well. A man who has the skill and acumen to build up a successful business and accumulate several millions of pounds like this has no excuse for not using his common sense to tell him that to go blindly into a deal just because someone recommends it is stupid. He wouldn't have done such a deal in his business - or thrown good money after bad.

Very good advice indeed, FlicketyB. Your cautionary words should be emblazoned everywhere. As soon as I hear the description 'financial advisor' I reach for my harpoon. Listened to the Queen's speech this morning and was horrified to hear that the government intend to loosen up people's access to their own pension deposits. Tempting people with their own money again. I bet the so called 'financial advisors' are rubbing their hands already in anticipation. Take care, folks, the wolves are circling the wagons. Stick to National Savings!

But no interest no matter how small and always the danger of theft.

to nanonthego - a jam jar under the bed I think!

ps in the UK deposits up to £85,000 are protected if your deposit organisation goes bust. If you have more than that spread it around different deposit takers.

Any claim for an impaired annuity is very carefully checked and may depend on a medical. DH has high blood pressure and mild diabetes, this had no effect on his annuity rates. They would look for evidence, probably physical, if you claimed to be a heavy smoker.

Thank you jane I will look into it. I have to admit to feeling quite upset for my daughter as the money was all her dad had in the world when he died. She was very sensible and said straight away that if she didn't put it away safely she might waste it. A fat lot of good it did her as effectively given inflation etc. she ended up with less than the amount she started with. I am also very angry at the amount of money Aviva spent on their celebrity take over campaign, money that technically belonged to my daughter.

No, not really, ps.
You said 'try to get away with claiming to be decrepit' - that sounded as though that was what you advised people to do, ie be dishonest.

Insurance claims don't have anything directly to do with annuities of course, but there is a parallel, if people make dishonest claims. Dishonest insurance claims make the cost of premiums go up for everyone else.

Annuities come out of huge funds held by insurance companies like Legal and General and Scottish Widows. The actuaries make their calculations based on what they are likely to pay out. If they are paying more out to people with reduced life expectancy because more people claim to have a reduced life expectantly, some of them following your advice and being dishonest, then there is less in the pot for other people.

No I dont, have never done so and wouldnt but I am stating a fact. I really don't see what insurance claims have to do with purchasing an annuity. You will not get a lower rate because of a smoker claiming to be or not as annuities are a product of individual risk and as a consequence those not enjoying good health or living an unhealthy lifestyle will not be expected to have the life expectancy of those who do, hence the variance in rates. I could have increased my annuity by some 25% had I declared being a smoker, however I am not therefore didn't. I would not however sit in judgement of anyone who did as I would not know their reasons for doing so. I trust that answers your question.

Yes they are Gilly.
Charges should be clear and transparent.
Get advice from the Financial Conduct Authority.
www.fca.org.uk/site-info/contact

My daughter inherited a few thousand pounds when she was 21. She placed it into a 5 year bond with Norwich union (who later became Aviva) after 5 years she ended up with virtually exactly what she had originally invested. We have demanded to know what Aviva have taken/used/charged over the years but so far they have been very reluctant to cough up the information. Does anyone know if there is any complaint procedure we could go through. Are they obliged to tell her what they have made from her money? I am clueless when it comes to this sort of thing.

" try to get away with claiming to be decrepit, on your last legs and a smoker - even if you are not. Dishonest I accept but you will get a better annuity rate "
Do you advocate making dishonest insurance claims as well, ps
That is why the rest of us get lower rates for our annuities, and pay more for our insurance

Sound advice from FlicketyB, just one small point - please be aware that once you have deposited your money with a bank it is effectively no longer yours it is theirs. Normally an academic point but in the case of a bank failure the bank can use 'your' money to re-capitalise itself and offer you shares in return. Those shares may prove to become worthless. Not too likely an event in UK but always possible I guess.
As for buying an annuity try to get away with claiming to be decrepit, on your last legs and a smoker - even if you are not. Dishonest I accept but you will get a better annuity rate, assuming evidence is not required, and I agree shop around, you do not need to use whoever your pension fund is with, they have had the benefit of your contributions for years and made a lot of money from them.
As for changes to the rules on pension pots I fear for those who will be tempted to take the cash if only for the reason that they will immediately lose up to 40% of it in income tax. Whats the betting a plethora of 'Pension investment products' suddenly appear in the market just before the new rules come into effect. Beware!

I agree with all you've said Flickety. In fact as I read your post, I was ticking off each point and am pleased to say I hit all your criteria! I'd just add one specific point. If you're considering buying an annuity with your pension pot, please look at all open market options and don't just go with your provider. This is less relevant since the recent change in rules about pension pots, but may still apply.

FlicketyB if only we had had the benefit of your advice six years ago we might have avoided the massive mistake we made regarding investment. I am sure the agonizing over it is part of the reason my poor DH is so ill

rosesarered

The 123 account from Santander [currant account] seems to be the best [safe] thing around.

Good advice from FlicketyB[ she pays me a small fee for that.]

Valbeasixties if your mother has dementia any contract she signs with anyone is automatically nul and void as she does not have the mental capacity to act for herself.

It is worth remembering this as these salesman often rely on conning people, of all ages, with any sort of mental problem into signing contracts knowing that family and friends will often not seek advice when faced with this problem and can be coerced into helping the vulnerable person to fulfil it.

I resent the whole tone of this blog and its suggestion that because we are over-retirement age we are all fiscally incompetent. When we were as young as the author there were 100,000s of people of our then age working as accountants, bankers, book keepers and in a whole range of other financial savvy jobs. We do not suddenly lose that savvyness when we retire.

Being tempted to invest in get rich quick/get high income schemes is not particular to older people. It is just that elderly people make a good sob story in the papers when we do, because papers believe that if older people make bad investment decisions it is because their age automatically makes them gullible and therefore good for a sob story - and that I find insulting. Read the financial pages of any popular newspaper and it is full of stories of people of all ages who have made blinding obviously bad financial decisions and then get all upset when it all goes wrong.

I have no qualifications as a financial advisor but I suggest the following rules for the many who do not understand or think they do not understand finance.

1) Never a buy a financial 'product'. The moment your advisor mentions the word product, gather up your savings and run for the door

2) If you do not understand what is being offered, do not buy it. Insist on taking the paperwork home and reading it carefully, with a magnifying glass if necessary. If you are not absolutely clear about what you are being sold do not buy it. It may be ideal, but you can not be sure unless you understand the paperwork. (This is known in our family as 'Helen's Law' after my daughter who propounded it after getting her fingers burnt financially)

3) If your funds are limited the safest way to guard them is to put them in a savings account in a bank or building society or buy savings bonds for periods of years. Yes, the interest is lower, but your capital is as safe as it can be. Look online or in the financial pages of the papers at weekends. They will list interest rates on different accounts with different savings institute and you can often get a higher rate by moving to a different Building Society or bank

4) Take responsibility for your financial decisions. All the popular papers have financial sections. Read them. Do not sit down and try and read them from cover to cover, but start by scanning the headlines, read the 'readers questions and answers section and learn by others mistakes. Try reading the comparative interest rate tables at the end of each section, gradually you will increase your understanding and begin to read more. None of us is safe from a really clever fraudster, but forewarned is forearmed and with some financial knowledge, you are better able to make your own decisions and not be cheated by a smart salesman.

5) Never buy anything from a cold caller, especially a cold caller who rings you at home. Don't be lured into conversation. Just put the phone down

5) Do not be greedy, like love and marriage, high returns and high risk go together.

What can we do with the little money we have hidden away? Where is the best place/advisors to go to where we won't be taken advantage of?

On a different note.......
My mum had Parkinsons Disease with dementia but was able to live at home with support. One evening when I went to visit her to put her to bed, I noticed a document which she had signed that day on her table regarding replacement windows on the ground floor of her cottage. The cost was incredibly high as no 'negotiation' had taken place. Sadly, we knew that mum's time living by herself at home was limited and in fact she moved into a nursing home 6 months later. I telephoned the 'very well known' double glazing company to explain the situation and express how saddened I was as it would have been very obvious to the sales person that my mother had dementia and was unable to make decisions independently. Reluctantly they agreed to annul the agreement but were surprised by my suggestion that taking account of vulnerable people when cold calling should be part of their training programme.

janeainsworth shockingly low return isn't it. A tax advisor mentioned the government bonds but our lot have spent most of the pension fund hence my nervousness in letting them get their hands on my meagre amount of money! And, I forgot to mention, if money is taken out without three months notice, I would have incurred a penalty! All very worrying when you don't understand any of it

I was told recently at my bank that advice is no longer given on Investments.They will tell you what is available and interest rates etc but advice has to be paid for.I didn't query this it was just in a conversation.

Holly I think anyone who works in a bank will only recommend their own products. I agree it's not worth having your money tied up for 25GBP a year!

janeainsworth

After meeting with my bank, I wasn't taken with anything (why would I tie up my money for a measly £25pa?). I now feel concerned as the chap then said, and I'm sure he used this term (which appears in the article), 'senior wealth advisers' - I thought it meant senior as in a senior position!

papaoscar

I recently met with an advisor at my bank regarding investments and the best deal they could offer returned a whopping £25 per year

There has been a suggestion about Government bonds but I'm not sure I trust the government with money given the pension fund.

I had forgotten about National Savings though so I shall look into that. Many thanks for the suggestions.