Retirees `facing potential debt problems`

Two-fifths of Britons will run out of money - and potentially face debt problems - by the age of 85, it has been suggested.

According to research conducted by the Lincoln Financial Group, 41 per cent of the UK`s population will exhaust their retirement income by the time they reach this age.

The organisation described the figures as "a major cause for concern", with 65 per cent of people expecting to live to 85.

Meanwhile, 11 per cent of people questioned reported that they are not sure that they have sufficient funds to last them until they reach the age of 70.

"Increasing longevity means that it is more important than ever for people to seek financial advice to work out a retirement plan that will suit their individual circumstances and provide them with an income for life," advised Simon O`Connor, head of products and marketing at Lincoln Financial Group.

Recently, the Alliance Trust Research Centre cited figures which suggested that while the rate of inflation for Britons under the age of 30 is 2.7 per cent, those aged 75 and over are experiencing a rate of 5.9 per cent.