Sally Merritt, head of product at Saga Money, said a decline in the base rate has highlighted the need to look beyond cash.
According to Saga Money, when it comes to the Bank of England base rate, many over fifties have been "sorely disappointed" this year.
In a poll of 7,880 customers Saga found that almost four in 10 predicted the base rate would rise by the end of 2016.
However, the same group were optimistic of an increase by the end of 2017, with the typical rate rise predicted as being 0.75 per cent.
The majority of over fifties believe there will be a further increase in 2017 and that the consumer price index would be around 2 per cent.
Around one in five of the over fifties surveyed correctly predicted the 2016 closing range for the FTSE 100; twice as many as predicted the correct closing range last year.
According to Saga Money, this indicated they are becoming accustomed to the financial climate in the UK.
One in four men correctly predicted where the FTSE 100 would sit by the end of 2016, compared to just 1 in 13 women.
However, on average, the Saga generations predict the FTSE 100 will be around 7,008 this time next year; with 1 in 25 thinking it will break the 7,400 barrier next year.
Only one in six believe the FTSE 100 will be lower by the end of 2017.
The survey also revealed men are more optimistic than women as they’re three times as likely as women to think the FTSE 100 will increase 36 per cent and 12 per cent respectively.
Ms Merritt said: “We can see from our research that many over fifties are particularly savvy and keeping a close eye on the financial climate, which is key for people trying to make their money work hard for them throughout their retirement.”