More than 1.8 million over-55s consider shares as an alternative to pensions, according to research by Lincoln Financial Group.
The group says consumers who put money directly into shares and unit trusts, or invest via ISAs and PEPs instead of saving into a recognised pension scheme are risking their retirement income.
Lincoln’s research shows 26 per cent of those aged-55 plus who invest in shares regard their investments as an alternative to their pension and 21 per cent of those are considering increasing the money they have invested in the stock market.
Lincoln Financial Group head of product and marketing Simon O’Connor says some people are playing a very dangerous game.
He says: “Stock market volatility this year has been pronounced and the recent past has seen four years in which the FTSE-100 has ended the year down. In fact the FTSE has still not returned to its high at the end of 1999.
“Long-term investment is the key to successful retirement income planning and pensions are the ideal vehicle to deliver the retirement income aspirations of savers. The tax advantages alone make pension saving demonstrably superior to direct stock market investment.”