According to recently released figures nearly 2 million people are planning on working beyond their retirement, as a direct result of the current economic downturn.

Around a quarter of over-55s believe that they will be forced to work beyond the standard retirement age of 65, in order to make ends meet.

Nathan Gladwell, spokesman for leading debt advice specialists Chiltern Debt Management, is worried at the plight of the older generation. He said “There has been a marked increase in the number of over-55s in financial difficulty, contacting our organisation for help and debt advice.

“We are hugely concerned that individuals that have worked very hard, and for many years, could have no choice but to continue working in order to maintain their debts.

“People approaching retirement, should have something to look forward to, and not have to worry about what the future holds.”

Consumers that are suffering with debt problems should contact a debt specialist for advice before the situation deteriorates further.

The report was commissioned by charities Age Concern and Help the Aged, who warn that additional rises in the cost of fuel over 2008 woul dhave increased the burden on pensioners, and forced many to cut spending in other areas to be able to afford their bills.

The group reported that some of the elderly were even resorting to staying in bed in an effort to try and reduce the amount they spent on heating.

This comes after a recent study by Scottish Widows which illustrated that a third of pensioners still had outstanding loans and credit card debts.

With living costs having risen dramtically in recent years, eating in to any savings, many have had to use personal loans, credit cards or release equity in their property to cover rising costs.

But with the property market plummeting recently and banks refusing to loan money, many have racked up outstanding overdrafts and credit card debts to cope.

Andrew Harrop, head of public policy at Age Concern and Help the Aged, said: “Shockingly, the report finds that while poorer pensioners are spending more of their available income on energy, they are – at the same time – reducing the amount of energy they buy.

“Not only does this demonstrate the problem of soaring energy costs in recent times, but is a warning to policy makers and others that vulnerable older people could be putting their health at risk in winter just to cut costs.”

Ivan Cooper, Chairman at the UK’s leading debt management company Chiltern, said: “The debt management worries of the elderly have been increased by rising costs of energy bills in recent years.

“For many pensioners some impartial debt advice could ensure that they do not develop any serious debt problems.”

The government has claimed that it will assist the elderly with their fuel expenses though.

Minister for Energy and Climate Change, David Kidney, said: “Pensioners must not feel they can’t heat their homes this winter.

“We’re giving extra help to those households through a range of measures including Warm Front grants for insulation and heating improvements, winter fuel payments to all pensioners this winter, and we will create mandatory social price support for the poorest at the earliest opportunity.”

Our pensioners are worse off than their counterparts in countries such as Poland, Romania and France, according to figures published by the European Commission.

The study, analysing relative poverty across 27 European member states in people over 65, found that almost a third of UK pensioners were at risk of poverty – equal to Lituania with 30 per cent.

Michelle Mitchell, charity director for Age Concern and Help the Aged, said: “In a country where the richest have incomes five times higher than the poorest, older people are disproportionately bearing the burden of this inequality”.

This was echoed by Ivan Cooper, Chairman for leading debt management company Chiltern, who said: “Increasingly we are receiving enquiries from peopel over 65 who are struggling to live off the pension they receive.

“Many have outstanding debt problems that they have taken into retirement with them, but now cannot maintain on their lower income.”

Steve Webb, Shadow Work and Pensions Secretary for the Liberal Democrats, said: “We need a more generous, universal pension based on citizenship that would give pensioners a sense of dignity and a stable income in retirement.”