The Prudential Retirement Index found that 17 per cent of OAPs survive on less than £5,000 a year, while a third manage on £7,500.

The situation has become so bad for some, says the Pru, that two per cent have considered suicide as a way out of their financial misery.

The Pru has said the findings are a testament to the stark fact that people must save earlier for their pensions.

Roger Ramsden, Prudential’s executive director, said: “We know that in the future, private retirement provision will outstrip state retirement provision, which will put even more onus on the individual. There has never been a more important time to plan ahead.”

The Pru also says 60 per cent the UK’s pensioners have had to cut back spending in the last six months, even on essential items.

Around 18 per cent have cut back on electricity and heat, 12 per cent on food and six per cent on doctors visits and medication.

Only 17 per cent of people have managed to re-arrange their finances to ensure they have a comfortable old age, says the Pru.

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