These claims were made by Norwich Union following its new Retirement Index which shows that 2005 was the worst year for allowing a pensioner to enjoy their retirement free form debt worries.
Daren Carter, director of sales and marketing for Norwich Union personal finance, said: “Retirement is often regarded as a time when pensioners should be enjoying their life but rising household bills mean that many on fixed incomes are struggling to makes ends meet.”
The comments come after Fidelity International last month warned that pensioners can expect an average income drop of 62 per cent upon retirement, with many now living off their overdraft.
Household bills for pensioners rose by 7.4 per cent last year according to Norwich Union, offsetting any improvements in pensions.
With pensioners facing growing debt, Mr Carter urged them to consider equity tied up in their homes as a method to ensure a more comfortable retirement.