The FSCS found that 20% of retired people aged 55 to 75 had thought about utilising such schemes.

The scheme said it is noticing an increasing number 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 huge amounts of money if the provider fails or investments do not perform as expected.

Many investment scams have also appeared during the coronavirus pandemic.

Those considering making an investment can check the Financial Conduct Authority (FCA) website to make sure a firm is authorised.

The survey found that just one in eight (12%) retirees said they had taken advice from an Independent Financial Adviser (IFA) to see how they could make their money go further. While more than a third (36%) of people had invested their money after retiring.

Although the majority (69%) of those investing said they knew all their investments were Fscsprotected, only 36% of investors knew the exact amount of FSCS protection available for their money.

If someone holds money with a UK-authorised bank, building society or credit union that fails, the FSCS will compensate them by up to £85,000 per person.

If a pension provider or financial adviser goes out of business, the FSCS may also be able to step in and pay compensation. But FSCS protection varies depending on the type of pension product, and there are also limits to the amounts it can compensate.

Caroline Rainbird, CEO of the FSCS, said: “We are seeing increasing numbers of customers seeking compensation from FSCS due to failed pension and investment products, or poor advice.

“The real danger is that if consumers choose to put money into high-interest pension and investment products that are not Fscs-protected, they could lose lifechanging sums of money from their retirement pots if the product provider fails.”