One in five retirees has considered riskier pensions and investment products in the search for higher rates of interest, a survey has found.

Some 20% of retired people aged 55 to 75 said they had thought about such schemes, the Financial Services Compensation Scheme (FSCS) found.

The scheme said it is seeing increasing numbers of customers seeking compensation due to failed pension and investment products, or poor advice.

The FSCS, which acts as a safety net for savers if their bank goes bust, said the prolonged low interest rate environment has made it more tempting for retirees to review high-interest investment products that they would not usually consider.

People tempted by offers of high returns could end up losing life-changing sums of money if the provider fails or investments do not perform as expected.

Many investment scams have also appeared during the coronavirus pandemic.

People can check the Financial Conduct Authority (FCA) website to make sure…

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