Those approaching retirement may wish to consider looking at financial products that will help to maximise their income, as a growing number of people are finishing their working life in debt.

An estimated one in five (18 per cent) individuals who are due to start drawing on a pension this year face this issue, according to the Class of 2012 study from Prudential.

It was specified debt repayments will set retirees back around £260 a month, which is approximately one-fifth (19 per cent) of the average monthly income of £1,290.

"Retiring with outstanding debts could be a sign of a lack of financial planning. It is important therefore for those still at work to save as much as possible as early as possible," commented Vince Smith-Hughes.

This may be particularly relevant advice in the current economic climate, as director of Chapters Financial Keith Churchouse recently warned finances are unlikely to improve in 2012.