Although the majority of Brits would like to retire into a life of luxury, many are not handling debt management adequately to achieve their dream, according to a new survey.
The study from Scottish Widows found that 49 per cent of those still working are not saving sufficient amounts of money for retirement.
Among current retirees, 17 per cent who received a tax-free sum from their pension used it to pay off a mortgage and 24 per cent used it to pay off other debts.
Head of pensions market development Ian Naismith warned that it is vital for working people to plan for the future.
“It’s a shame that some people need to spend their hard earned savings on paying off a mortgage or clearing debts,” he commented.
Meanwhile, charity Age Concern have criticised the government’s recent fuel poverty help plans.
“This package will leave millions of the poorest pensioners wondering how they will afford their bills this winter,” stated director general Gordon Lishman.
By Jamie Price