Older people may be more likely to get into credit card debt because of the widespread decline in pension income.
A recent survey by Investment Life & Pensions Moneyfacts revealed that the average personal pension has fallen in value by 60 per cent over the last ten years.
According to the poll, someone who had contributed £100 per month into a balanced managed fund for the previous 20 years would have a total retirement fund of £40,749 if they stopped working now.
Had they retired a decade ago, the figure would have stood at £103,914.
Investment Life & Pensions Moneyfacts editor Richard Eagling said the reasons behind poorly-performing pensions are the credit crisis and the dotcom crash.
"However, unless individuals increase their contributions and take greater interest in the returns generated, the next decade could prove just as disappointing," he commented.
Things could have been worse for pension savers had the stock market not experienced a recent rival, the survey also revealed.
Moneyfacts said earlier this month that personal loan rates had hit a nine-year high.
Posted by Martin Peacock
