People on low incomes would have the most to gain from debt help and could save nearly £60,000 by the time they reach 60, the Resolution Foundation claims.
Commenting on the benefit of providing better financial advice to those on low incomes, Resolution Foundation chairman Clive Cowdery said: “Telephone-based advice can be delivered to two million people a year at an annual cost of around £30 million.
“The government stands to make early savings of £100 million per year in the welfare budget from investing in financial advice, with a profound effect on individual lives.”
Politicians from across the spectrum have called for better debt advice and education which has led the government to introduce personal finances lessons at schools.
In its report, the Resolution Foundation claims that providing people with greater access to financial advice could also boost the income of the average future pensioner by up to £1,500 a year.
As well as helping ordinary people, the Resolution Foundation claims that the government would also benefit from the provision of more easily accessible debt help.