This is despite the risk appetite among UK adults over 50 being low, the FSCS survey found.

Only one in ten said they were willing to take any risks with their money.

One third of the 2,000 over-50s surveyed (37%) - who were unwilling to take risks - said they were worried about not having enough money to last the duration of their retirement.

However, half of this same group (58%) admitted they had only a vague or no understanding of annuities.

Top concerns about annuities included not knowing if annuities were right for them (29%), fear of a provider going bust (26%), not understanding how annuities work (25%) and a lack of protection if something goes wrong (25%).

The compensation body said its research points to a mismatch among over-50s in terms of their wants and how they behave financially.

Lila Pleban, chief communications officer at the FSCS, said: “It is not surprising that most UK adults aged 50+ are risk averse when it comes to their money. At this stage of people’s lives, they are likely to choose safety and stability over volatility and uncertainty. However, what is surprising is that many people are not willing to even consider an annuity because they don’t fully understand what it is.

“It is clear from our latest research that those aged 50 and over must have access to the knowledge and tools they need so they can choose the right retirement product for them. That’s why at FSCS we are committed to empowering and educating consumers, so they feel confident about the decisions they make when it comes to their money.”

• The FSCS surveyed 2,001 UK residents over the age of 50 online between 21 and 30 March.