The Financial Services Compensation Scheme has warned that retirees are being tempted to put money into investment products claiming to offer high returns due to the prolonged low interest savings environment.

The Financial Services Compensation Scheme is forecasting a levy for 2021/22 of £1.04bn, up £339m from the £700m raised the previous year due mainly to soaring numbers of claims.

The Financial Services Compensation Scheme is set to increase its levy yet again as it faces a £92m shortfall, according to its half-year Outlook report published today.

It is astonishing to think that investors who have been compensated by the Financial Services Compensation Scheme go on to lose some, or perhaps all, of their compensation money all over again with another dodgy firm.