Those heading into retirement are doing so with a debt burden hanging around the necks as more of their income is diverted towards paying for the essentials.
As a result, some are being forced to take drastic measures, with five per cent taking on debt by borrowing from the bank or friends, with the same number resorting to gambling.
The worrying financial predicament for pensioners even sees nearly one in four cutting back on using their heating to save money.
Angus Maciver, Prudential UK director, commented: “It’s worrying to think that such a large number of pensioners in this country live on £5,000 or less a year.
“How many of us could truly say that we could manage on what works out to be just £8.49 a day? What’s more, this struggle isn’t just for a couple of years.”
Debt resolution company, ClearDebt, believes people need to take action on debt well before retirement.
“Whilst many have made inadequate provision for retirement there are some who also head towards their last pay day with a big debt burden,” says ClearDebt chief executive, David Mond.
“This will become much more difficult to deal with once the only income is a pension. People in their early 50s need to make plans to deal with their debt if they intend to retire in the black.”