The latest figures show the number of pensioners relying on financial assistance from family members has more than doubled to a quarter of a million since last year because of rising inflation.

New research from MGM Advantage, the annuity provider, found that more than 265,000 retired people had made requests for financial assistance from relatives, while 725,000 pensioners now regularly relied on credit in retirement. This is a significant increase on last year, when 119,000 people requested financial help from family and 486,000 depended on credit to make ends meet.

Millions of pensioners are seeing their retirement dreams undermined by the rising cost of living and inadequate financial preparation for their retirement.

Figures suggest that almost four million retired people have scaled back on their daily expenditure, with around 500,000 returning to employment or starting a new career during their retirement.

Craig Fazzini-Jones, a director at MGM Advantage, said: “It is tragic that so many people’s retirement dreams fail to come to fruition. The pressures facing retirees have increased significantly over the past six months as the rising cost of living continues to erode their disposable income.

“So it is essential they make their pension fund work as hard as possible by making the best decision on how they turn their fund into a retirement income.”