Mar 3 2009
People planning for their retirement need to think about investing in shares, claims one website.
Fool.co.uk says that with a further interest rate cut likely later this week, Britons need to think about shifting their investments elsewhere.
"The exceptionally low interest rates are disproportionately punishing consumers who rely on the extra money earned from savings to supplement their income," comments financial expert David Kuo, whose comments may influence those planning for their retirement.
He adds that investors can invest in individual companies which pay good dividends or invest in a portfolio of high-yielding shares.
At present, the dividend yield on shares stands at five per cent, Mr Kuo says, which is almost twice the amount paid on some instant-access savings accounts.
According to research from the Nationwide, 48 per cent of consumers believe government policy discourages them from saving, an increase of seven percentage points on results seen in the four months to November 2008.
