Over five million Britons feel they will be unable to afford to retire, according to new figures.

Research released by Prudential indicates that 14 per cent of British adults will not be able to stop working, which could be attributed to debt management difficulties incurred from personal loan costs and a lack of savings into pension schemes.

The research also indicated that 17 per cent of adults hope to retire between the ages of 66 and 70, with some nine per cent claiming they will not be able to give up working until they are at least 70.

Gary Shaughnessy, managing director for Prudential retail life and pensions, said: "This report makes depressing reading and highlights how many people fear they will not be able to afford to retire or will have to suffer a significant change in lifestyle to fund their retirement."

As a result, the majority of Britons were reported to believe they will have to use other savings and investments to supplement their state pension income.

The study indicated that 20 per cent of adults expect that they will have to sell their home so as to fund their retirement.

Meanwhile, 41 and seven per cent of consumers respectively were looking towards cashing in savings and equity release schemes.

Some 17 per cent were reported to be counting on receiving money from an inheritance scheme.

However, 13 per cent of adults claimed to have no additional means of financing their retirement apart from their state or private pension, which as a result could mean increased difficulties paying off Personal Loans, credit cards and other forms of borrowing in later life.

These debt management problems appear to be particularly increasing for women, as the proportion of those solely counting on a state pension rises to 21 per cent among females.

The Prudential study also indicated that two-thirds (64 per cent) of those polled believe that their state pension income will have decrease in relative terms by the time they reach retirement.

He added: "It’s important that people look wider than just their pension and review all the financial options available to them."

As planning for retirement is said to be "paramount", Mr Shaughnessy claimed that consumers should take the time to review their financial situation so as "to plan for the income they need and want and to understand what financial vehicle would best suit to meet this need."

Meanwhile, a study carried out by National Savings & Investments (NS&I) indicated a third of consumers are "financial fantasists".

The research revealed that 33 per cent of adults are either counting on increased wages or are set to take out a personal loan or another form of borrowing instead of creating a plan to secure their financial future.

NS&I also indicated that over half of the British population (55 per cent) are yet to make any financial plans which in turn could lead to them incurring difficulties in handling debts and paying off loans in later life.

Senior savings strategist Dax Harkins claimed that as there is "never any guarantee" to rising salaries consumers should draft up a savings scheme as soon as possible.

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