Older generation divide

Britain’s over 55s are split into two groups of "haves and have-nots," according to one pension provider.

While some have been rewarded with generous pensions by their employers, others are struggling to save enough for their retirement fund and will have to consider working on in order to support themselves, research from Scottish Widows has shown.

Data from the study revealed that an estimated 1.5 million Brits over 55 say they cannot afford to retire at the state retirement age of 65.

"The ‘haves’ generally have good employer pensions, often based on their final salary, and can retire at or before state pension age with good incomes," head of pensions market development at Scottish Widows Ian Naismith said.

He continued: "The ‘have nots’ are discovering that they will have to work for longer than they might have expected just to make ends meet."

The Liberal Democrats have angered union leaders by questioning the sustainability of public sector pensions.