Retirement dreams 'put on hold by financial squeeze'

Millions of people are cutting back their plans for retirement, with some even turning to credit, such as payday loans, as a result of the financial squeeze.

New research by MGM Advantage has found that while six in ten people claim that the freedom to live their retirement as they wish, with full financial security, is their top priority, the reality is quite different.

Around four million people are cut back their daily retirement expenditure, with some 500,000 returning to work or embarking on a new career after working their last day.

A further 725,000 pensioners regularly rely on credit, such as payday loans or credit cards, the study found.

"It's tragic that so many people's retirement dreams fail to come to fruition, often because consumers lack understanding about their options or are unaware of some simple, easy steps that they can take to boost their retirement income," said Craig Fazzini-Jones, director at MGM Advantage.

Leading debt charity the Consumer Credit Counselling Service CCCS recently found that five million households are failing to save enough money.

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2011-08-16 14:11:53 © Moneyextra.com