The over-55 age group have seen their savings account balances dip over the course of 2011 by almost a third.
This is according to the latest Real Retirement report from Aviva, which found that savings pots in this age group have fallen by 27 per cent since December 2010.
Furthermore, the average annual income of over-55s is down four per cent, while inflation has risen by 5.4 per cent during the same course of the year.
However, there has been a slight improvement in the last quarter with average income up from £1,216 in September to £1,285 in December. But this still demonstrates a drop from the £1,335 that was recorded at this time last year.
In terms of savings, the typical individual over-55 has around £11,153 in savings accounts and investments, compared to the £15,262 they had in December 2010.
Clive Bolton, 'at retirement' director at Aviva, commented: "While the average amount the over-55s have in savings is down this is partly due to the fact that more people are now starting to save, which is good news.
"However, with income levels falling and inflation rising, it is going to make it difficult for some to maintain their standard of living and to secure a comfortable retirement income for themselves."
