Brits are failing to save for retirement and face a future of financial hardship, while those currently retired are suffering the most at the hands of high inflation- claim new studies.

Retirement plans within the UK have been a cause for concern for some time, as more and more studies claim Brits are not doing enough to ensure they can live financially comfortably during retirement. So much so that a new study by life insurer Zurich claims many Brits are delaying retirement, working after retirement or are even forced to return to work due to a lack of money- a trend coined by independent think tank, the Future Laboratory, as ‘Returnment’.

The study claims the high percentage of Brits who have never sought financial advice in regards to a potential retirement plan is also a huge concern. According to the study a high 74 percent of us fit into this category while 94 percent of 25-34 year olds choose not to take up expert advice; and shockingly 7 out of 10 Brits approaching retirement age have never asked for financial guidance either.

While 42 percent recognise that they are not saving enough now to afford their ideal lifestyle in retirement, 65 percent expect to go on holiday every year in retirement, 52 percent thinking they will be able to go away twice in a year during retirement.

According to the research Brits more than ever want to remain active in their retirement with 31 percent intending to socialise a few times a week and 3 out of 10 plan to hit the theatre or ballet at least once a month. The study claims such expectations are unrealistic considering the little we’re currently saving for retirement.

“Whilst it is encouraging to see that people intend to lead such an active retirement, there is real need to alert people to the importance of planning for their retirement from an early age,” says Tony Solomon, Business Development Director, Zurich UK Life.

“If we fail to address this issue, there is a real danger that those already enjoying their retirement, may be last generation to experience the financial freedom of a carefree retirement spent living off the children’s inheritance,” adds Solomon.

However a separate study by Alliance Trust claims those currently in retirement are not having such a great time, as high inflation is causing the cost of living to rise excessively.

According to the research the inflation rate for those over 75 year old reached 5.4 percent in June, the highest figure recorded by the researchers in 6 years, compared to rates of 3.8 percent for under 30 year olds, 4.2 percent for 30-49 year olds 4.7 percent for 50-64 year olds and 4.9 percent for 65-74 year olds.

The study found that those of retirement age spend the most of their income on food, approximately 16 percent of their household budget compared to 9 percent of under 30 households. With food prices increasing around 11 percent over the past year the elderly have been affected the most as a result.

Rising gas prices are also causing further financial blows to over 75 year olds as they spend around 7 percent of their available income on such utility bills compared to 3 percent in under 30 households.

While all age groups are experiencing the pain of high inflation these figures reveal that it is the over 75’s who are the most effected by high inflation.

“Our study continues to highlight the extent to which inflationary pressures are hitting the elderly,” says Shona Dobbie, Head of the Alliance Trust Research Centre.

While some goods are dropping in price, such as clothing, footwear and audio-visual many of us can not reap the benefits as we’re all being left with less money, as a result of high prices for basic goods and services.

“Over the next couple of months as the oil price is expected to remain high and gas and electricity prices are expected to move higher,” adds Dobbie

“This means that headline inflation is likely to rise a bit further in the next few months.”

“The danger is that this high level of inflation forces policy makers to leave interest rates higher for longer, increasing the risk of an even greater slowdown in demand and threatening the economy as a whole,” concludes Dobbie.