Low interest rates are likely to have a negative impact on pensioners’ savings, it is claimed.

Trevor Williams, UK chief economist at Lloyds TSB, says they tend to rely on their savings more than other groups, which could cause them financial difficulties.

"With the economic downturn as it is, pensioners have got to be worse off, and more so when the economy is [in the state that] it is at the moment," he continues.

Furthermore, Mr Williams claims that the government is making less money available to be spent on public policy, which could also be to the detriment of older people’s savings.

Volatility in equity markets will likewise affect pensioners, he adds, which will be problematic for those who have their savings in shares.

According to a recent release by the Institute for Fiscal Studies, older and poorer households are facing much higher average inflation rates than younger and richer ones.

It found that all household groups aged under 50 had average inflation rates of less than one per cent; those aged 30-39 had the lowest rate at -0.9 per cent.