Trevor Matthews, chief executive of Standard Life Assurance, added that 44 per cent of Britons cannot or will not save, due to such financial burdens bills and spiralling debt.
“The savings gap in the UK is of great concern. Low interest rates, the easy availability of debt and lack of incentives are leading people to spend rather than save,” Mr Matthews told a savings conference.
In addition to problems caused by repayments, the chief executive identified a distrust of the financial services industry as another reason for people not saving.
He called for better financial education, something that should lead to many people being able to avoid or clear debt.
“We need to educate to change attitudes and engage those who have become disenfranchised by concentrating on propositions not products,” concluded Mr Matthews.