People urged to consider finances of the future

Consumers in the UK have been urged to review their personal finance plans for retirement now in order to avoid difficulties in the future, such as high level debt.

According to David Kuo, head of personal finance at Fool.co.uk, the basic state pension is not sufficient to provide for all the needs of people in their post-work years.

He said: "It has also come a long way from the five shillings a week that was first paid out on January 1st 1909. But at £90.70 a week, it is still just that - a safety net. We therefore urge people to revisit their retirement plans immediately."

The expert went on to say that when house prices were rising rapidly, people could more easily fall back on the option of releasing equity from their homes.

However, with the value of homes now falling, many consumers will find they have less equity to release, he continued.

Meanwhile, figures produced recently by the Alliance Trust suggested that the elderly are experiencing a rate of inflation which is above the UK`s average.

It found that people aged over 75 have an inflation rate of 6.7 per cent, compared with the official rate, which now stands at 4.1 per cent.