Retirees ''use cash to pay off debts''

Two in five retirees use lump sum cash payments they receive as debt relief, according to a Scottish Widows UK Pensions Report.

This could be due to the exuberant lifestyle that many retirees enjoy, with research showing that 45 per cent of over-65s decide to travel in their old age.

More than one quarter (27 per cent) of respondents claim to have taken up a new hobby to pass the time, despite nearly half (49 per cent) considered to be saving too little for later life.

Ian Naismith, head of pensions market development at Scottish Widows, explained: "It is encouraging to see that so many people are enjoying themselves after they retire, but it is vital that people who are still working realise the difference between wanting a good retirement and actually planning for one.

"It''s a shame that some people need to spend their hard earned savings on paying off a mortgage or clearing debts. Retirement should be about enjoying life."