Older people who are asset-rich but cash-poor are at risk of making poor financial decisions based on inexpert advice, according to research commissioned by ICAS.

A study carried out by academics at Bournemouth University and the University of Hull and published by the research committee of ICAS indicates older people have very little awareness of the Money Advice Service (MAS) and financial services regulation. They are also more likely to ask health and social care providers, rather than finance professionals, for advice on how to make their money go further.

The research also showed that the economic downturn is having a 'marked impact' on the wellbeing of asset-rich but cash-poor older people, leaving many feeling anxious or depressed, and many more at risk of isolation as they limit spending on social activities to make ends meet.

Academics who carried out research recommend in their report that care and financial service providers partner together, and say that the Department for Health, councils and MAS should get together to fund social clubs for older people featuring elements of retirement and financial planning.

The researchers warn that the results are particularly concerning given that the interviewees also indicated that older people are less averse to financial risk-taking in times of downturn, while relying on inexpert advice.

Michelle Crickett, ICAS director of research, said: 'The fact that these older people are seeking financial advice from non-finance professionals, leaving their already stretched finances open to further risk, is highly concerning. We would encourage the government, the financial services sector, the third sector and care providers to work in partnership with accredited financial advisers to help ensure older people can obtain the advice they need.'