Financial services companies are ignoring the growing and lucrative over-50s market, according to a report by independent analyst Datamonitor.
Datamonitor found that face-to-face meetings with IFAs were the preferred choice of the over-50s when buying complex items such as life insurance and investment products but when it comes to simpler products this age group are happy to buy direct.
The research also found over-50s preferred long-established brands rather than newer entrants to the market. It also found this age group is more likely to buy savings products than lending products such as loans and mortgages.
It says Saga Financial Services and Help the Aged are successfully focusing on this sector.
Datamonitor financial services analyst and report author Helen Smith says: “For many, turning 50 represents a new life stage in itself. It is often a period of prosperity as mortgages are paid off and children leave home. It is also a time of intense planning for retirement.
“These changes in living circumstances mean that the financial needs of over-50s are very different from the rest of the population. In spite of this, and the fact that the over-50s account for the growing proportion of the population, few financial services companies actively target this segment. Those that do, comment that it is a difficult group to market to effectively.”