Many pensioners find it difficult to sustain their standard of living as they get further into their retirement, it is believed.

Findings from the Pensions Policy Institute (PPI) show that those in their 60s can generally maintain a good way of life, although this changes as their need for care grows.

Niki Cleal, PPI director, comments: "This research shows that pensioners will need a range of assets and sources of income to help them cope with the uncertainty and extra costs they may face later in their life as a result of the onset of disability, widowhood or the need for long-term care."

Those who are struggling to fund their need for care in later life may wish to turn to debt management companies for advice, with Ms Cleal saying that financial assets may be turned to as a means of creating funds.

The Office for National Statistics recently reported that 39 per cent of working age people in Britain (13.8 million) were contributing members of private pension schemes.

For men, the proportion who were members of any private pension scheme fell from 49 to 43 per cent between 1999/2000 and 2005/06.