Rising utility costs and fears of recession are the key concerns for people entering retirement, it has been claimed.

Research conducted by LV= has shown that 66 per cent of elderly people are concerned over a possible financial shortfall of some £4,000 per year when they retire.

Furthermore, a quarter of those who are concerned about their retirement finances are not saving money for when they leave work, while four in ten are not increasing their savings despite their worries.

Over three-quarters of those surveyed pointed to mounting costs as their main financial concern, with the recent rise in fuel prices seen as a large threat to their retirement income.

Mike Rogers, group chief executive of LV= commented: "The combined impact of the rising cost of living, fears of a recession and widespread media coverage of the credit crunch, has created an anxious majority of people facing retirement who are very concerned about their financial future."

In recent months six major energy suppliers have increased their prices by around 15 per cent, with E.ON being the most recent to do so.