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People have yet to build up a substantial retirement cash pot which can comfortably fund their lifestyles when they leave the workforce, it has been said.

As such, people are living frugally now in order to make sure they have enough for later life, claims Hetal Parmar, manager for savings at Alliance & Leicester.

"We all look for a comfortable lifestyle in retirement and whether it is paying for a holiday, updating the car or covering the costs of healthcare or whatever it is," he says, although such ventures could be paid for with a loan.

Indeed, 58 per cent of people have told the bank that they are under no illusions that their retirement is going to be an extravagant time, Mr Parmar adds.

Research by the bank discovered that 35 per cent of people will make or have made sacrifices in order to build up their financial retirement coffers.

But for households which would rather not scrimp and save for years to come, secured loans could provide the cash to pay off any outstanding debts and may cover the future's ventures, such as a holiday or a car.