Over 50s predict stocks and shares will offer best returns

Almost a third (31%) of over-50s believe the recession will continue into 2011, according to a new study from Saga Share Direct. Only one in ten (12%) believe the worst will be over in the first three months of this year, with men three times as likely to think this as women (16% vs 5%).

It seems that financially savvy over-50s will be pitting their wits against the stock market in 2010 to make a profit, as two fifths (40%) believe that investing in shares will offer the biggest financial returns.  Interestingly, women (31%) are much less confident about the stock market than men (46%).  A quarter (24%) of over 50s think that the FTSE 100 will remain at its current position of between 5000 and 5500 by the end of 2010, 41% believe it will be trading between 5501 and 6000.

Women are as likely to put their faith in the housing market as stocks and shares, a third (32%) predict property will offer the best return, despite the recent volatility in property prices. Little is expected from savings accounts - only 6% of over 50s expect these to give good financial returns over the next 12 months.

With the base rate at an all time low, the study found that over a fifth (21%) of over-50s expect it to double in the next year to 1%. A further one in ten (11%) expect interest rates to rise fourfold to 2%, which would significantly affect many people's mortgage and savings accounts.

Andrew Goodsell, Executive Chairman, Saga Group, said: "Whatever the Government says, the research clearly shows that a large number of over 50s believe the recession is far from over. Despite the difficult investment environment, successful stock picking could prove a key method of increasing funds this year."

With people predicting that high returns will be hard to come by in 2010, they should do all they can to make sure that their money is working as hard as possible by ensuring they avoid paying tax or charges where possible.  That's why the Saga Stocks and Shares ISA is such a good proposition.  There are no annual fees, shares can be traded from as little as £9.75 and there are over 700 funds to choose from with a minimum initial charge of just 1.5%.