Over two-thirds of British adults would spend a pay rise on a luxury holiday rather than pay off their existing debts or save towards their retirement, a new survey suggests.

According to the findings of the research, carried out by IFA Promotion, only 40 per cent of adults said that they would pay off long-standing debts if given an extra 25 per cent on top of their normal household income.

Only slightly more people (44 per cent) said that they would invest the money for their retirement.

This compared with 70 per cent who said that they would spend the extra money on a holiday, while 54 per cent said that home improvements were top of their agenda.

Amazingly, nearly half of those surveyed said that updating their wardrobe would be a higher priority for the extra money than paying off debt.

Commenting on the finding, David Elms, chief executive of IFA promotions, said: "Despite well-documented and countless warnings that as a nation, we are not saving enough, it seems that people are yet to adopt a sensible savings mantra.

"Whilst the research is based on a hypothetical situation, it serves to highlight a very real problem in that people are too reluctant to forgo their spending to secure a comfortable financial future. People need to place clearing debt and saving much closer to the top of their list of financial priorities."

Find more information on Savings Accounts from the UK Net Guide.