Many people in Britain are not taking enough steps to protect their standard of living when they reach retirement, according to one financial analyst.

F&C Investments is calling for policy makers to put more emphasis on personal savings which it suggests are heading for crisis, because consumers are "shopping their way towards retirement misery".

The firm takes as evidence the ratio of savings to income in the average British household which it states currently stands at 2.1 per cent - the lowest figure since 1960, when the country was emerging from post-war frugality.

Jason Hollands of F&C Investments remarked: "With rising life expectancy, it is a matter of critical importance that action is taken to encourage people to save for their retirement."

He said that easy credit and a cultural shift in attitudes towards significant borrowing were the root cause of the problem - with people happier to buy "luxury" items than worry about retirement.

"This is like watching an accident happening in slow motion," he added.

In recent days everyinvestor released data suggesting that pension incentives were too low to motivate consumers into saving.