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Pensioners fail to maximise potential

Over a third of pensioners wish they had invested more for their retirement, while over a quarter will have to make sacrifices in retirement, according to research from Britannic Asset Management.

In retirement, the overwhelming majority of pensioners prefer deposit accounts to unit trusts, Isas or corporate bonds.

Nearly 12 per cent of retired people wish they had put more into bank and building society deposit accounts despite current low interest rates while only 5.7 per cent used unit trusts, Isas or corporate bonds for income.

Britannic says over the last five years the income generated by £3,000 invested in the average bank or building society is £211.83 whereas the average UK corporate bond fund would have generated £749.32.

Director Francis Ghiloni says: “Once you retire, you have to accept your lot as far as your pension is concerned. But retirees need to make sure that whatever money they have to spare is still being used to maximise their income potential.

“They should consider all the alternatives available to them. If they have a lump sum they should not assume it is best to leave it all in a savings account and draw off income.”

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