More than half of workers struggling with debt, says HSBC

A survey carried out by a leading bank has revealed that the majority of workers in the UK are struggling to deal with the cost of living.

HSBC conducted the research to establish whether the cost of living crisis – which has been central to the shadow cabinet's criticisms of the current government – is as prominent as has been portrayed.

The survey looked at household incomes and changes to real wages as a gauge and found that retirement was one area that looks as if it will be heavily affected in the coming years.

A total of 52 per cent admitted that worries over monthly bills and mortgage repayments were threatening their chance of being able to retire and live comfortably from a manageable pension fund.

Meanwhile, it was also found that more than two-fifths had taken action to scale back their retirement saving, with 41 per cent explaining that current stresses regarding debt management had led them to adjust their future budgets.

The survey saw HSBC contact more than 16,000 working people from the UK. An even larger proportion (59 per cent) revealed that their current financial situation was causing them to worry of about how they will get back once they reach pension age.

HSBC head of UK wealth Caroline Connellan explained that with an ageing population and greater stress on personal finance following on from the credit crunch, workers in the UK need to be careful when saving for their pension.

She commented: "If there’s one action we should all consider, it’s to start saving as early as possible – even the smallest amounts saved now can make the likelihood of a comfortable retirement all the more real.

"This can sometimes involve quite complex decisions on the various savings and investment options and most people will benefit from financial advice."

By Amy White