The study shows that the average full basic state pension totals just £4,381 a year today and many pensioners do not have many, if any, additional funds for living expenses. This equates to under £60 a week to live on, after paying bills.

“It’s worrying to think that such a large number of pensioners in this country live on £5,000 or less a year,” Angus Maciver, Prudential UK director, said.

“How many of us could truly say that we could manage on what works out to be just £8.49 a day?”

“What’s more, this struggle isn’t just for a couple of years. Retirement is now roughly 25 years long for the average person, but who wants to spend what’s nearly a third of their life struggling by on less than a tenner a day?” Mr Maciver asked.

The findings bring home the importance of establishing pension savings as early as possible so that, come retirement, pensioners have catered for the cost of living.

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© Adfero Ltd