It is never too late for contractors and other professionals to save up for retirement, one expert maintains.

Robin Ellison (male), partner at Pinsent Masons, said: "Despite all the drawbacks and expense overheads, it is virtually never too late to save for retirement. The tax relief on the lump sum at retirement probably makes the exercise worthwhile on its own."

These comments follow research published by Saga which found that the quality of life for over-50s is decreasing as they are hit by falling income, rising inflation and higher unemployment.

Additionally, it was found that those in their fifties are suffering the most financially, with all over fifties in lower socioeconomic groups experiencing disproportionate hardship.

Meanwhile, Joshua Bamfield, director at the Centre for Retail Research, has said that due to the spending cuts, many firms are cutting back on employee's hours as an alternative to making redundancies.