Brits not saving enough for old age

British consumers have been warned they are borrowing far too much money and failing to save adequately for retirement.

14:03 19 January 2005

British consumers have been warned they are borrowing far too much money and failing to save adequately for retirement.

That's the conclusion of the Financial Services Authority, which identified the growing savings gap as one of its priorities for the coming year.

Action is needed to reverse this trend otherwise consumers' expectations for retirement will not be met, the city watchdog warned.

"A significant minority of non-retired adults, even among older age groups, have made very little or no provision for retirement beyond the basic state pension," the FSA said according to the Telegraph.

"Yet, our survey shows large numbers of people still aspire to retire early. Growth in consumer borrowing will ultimately delay consumers' ability to save for retirement and to meet other long-term financial needs."

Homeowners were also warned against relying on the value of their property to fund their retirement ambitions.