The long-term retired are having to "knock lumps" out of their nest eggs just to get by, pensioners' groups warned today, as a report found saving pots for the over-75s have almost halved in the last two years.
A further £50 billion was injected into the economy today as the UK struggles to pull out of its double-dip recession and the eurozone debt crisis intensifies.
Firms which offer investments such as personal pensions and Isas face tougher rules to ensure they give people a more realistic prediction of potential returns.
The UK's "failing" pension system needs to be radically overhauled and simplified to make it as attractive to consumers as saving into Isas, a report from the Institute of Directors said today.