More than a million people are set to retire whilst still in debt, new research from a leading insurance provider claims.

According to Prudential, over a million retirees face debts averaging £15,500, while 2.7 million admitted that they will not have enough income to cover all of their financial commitments.

The survey, part of Prudential's Retirement Index, also found that an estimated 70,000 retired people in the UK have debts of £70,000 or more, with little hope of ever being able to pay them off.

According to Prudential's director Angus MacIver, the problem arises due to people's belief that they will receive more in retirement than is actually the case.

"People expect their retirement income to be between £15,000 and £20,000 per year," he said.

"The huge gap between people's expectation and reality is at the root of the UK savings gap."

Savers are advised to ensure that they invest in their pension as early as possible in order to ensure that their retirements don't end up as lives of debt management and budgeting.