The 63-page study, commissioned by the Institute of Chartered Accountants of Scotland, found that lack of trust in financial advisers was “widespread” in a sample group of older people living in Dorset.
The 27 pensioners interviewed for the study had turned to the MAS or the Financial Services Authority for information on their finances, which the report described as being increasingly “stretched” by cuts to services in the public and third party sectors.
Older people were more likely to discuss their financial affairs with carers, according to 20 interviewees that provided health and social care to pensioners.
The study into so-called “asset rich, time poor” pensioners in the economic downturn also found that inflationary pressures were exposing older people to “financial abuse” or making them consider more risky financial decisions.
Michelle Crickett, director of research at ICAS, said the findings of the report should prompt the government, the financial services sector, charities and care providers to work more with financial advisers to ensure older people “obtain the advice they need”.
She said: “The fact that these older people are seeking financial advice from non-finance professionals, leaving their already stretched finances open to further risk, is highly concerning.”
Proposals put forward by the report include setting up social clubs for older people as a setting to provide financial advice, as well as bridging the gap in trust between the private financial sector and the public sector through better “interagency partnerships”.
The report also called for a system where health and social care professionals dealing with elderly people could pass on their queries to financial providers.
| Key findings |
- Asset rich, cash poor pensioners turn to carers more than financial advisers when needing money advice - None of the pensioners interviewed had heard of Money Advice Service - Elderly people are at risk of “financial abuse” and could make unsuitable decisions as a result of inflationary pressures |
| Adviser comment |
| Keith MacDonald, chartered financial planner at Worcestershire-based Broadway Financial Planning, said: “I am surprised that more people have not used Mas as it has been reasonably well advertised. But we have had many referrals from people who believe their parents need financial advice because giving that help represents too much responsibility for the children and they want to avoid conflicts of interest within families. The industry should have a bigger role in giving information at no cost to older people, possibly through the charity sector.” |
