Young people are urged to start saving or risk a penny-pinching retirement. Various sources, ranging from insurance giant Prudential to old-age specialists Saga and the Office for National Statistics are unanimous: Start saving as much as you can, as early as you can. If you are in debt, do something about it as soon as you can. Get help from any of a number of reputable debt management companies before the problem gets worse.

In particular, a new report from old-age specialists Saga paints a bleak picture of the ever-increasing financial burdens facing over-50s. Saga surveyed about 12,000 adults in this age group, asking about their lifestyle and how it has changed over the last 12 months.

Dr Ros Altmann, director general, says: “We are witnessing a significant decline in discretionary spending. This has worrying implications for the whole economy.”

More than 60% say the quality of their lifestyle has “crashed” over the last year, says Altmann, and millions of older people are being crippled by the combination of high cost of living, record petrol prices, tax increases and poor pay rises. These people, in large numbers, will soon need help with debt and will have to seek assistance with debt management plans and individual voluntary arrangements (IVAs).

Those polled said their cutbacks range from being forced to use their car less and buying fewer clothes, to cancelling holidays and never eating out. But the survey also found another 15% who are having to reduce “essential” spending, such as heating their home.

The Office for National Statistics will today publish the latest inflation figures.

Last month, inflation hit four per cent, which is double the Government's target. The Bank of England has warned that it expects inflation to keep on rising, and could hit five per cent this year.

These problems are going to get worse before they get better. Give us a call today if you are one of the thousands who need help with debt.

By James Murray