Standard Life discovered that 49 per cent using such financial services, while 17 per cent use investment-based products.

Furthermore, it revealed that the over-55s are more inclined to save than any other age group.

John Lawson, head of pension policy at Standard Life, explained that it is encouraging that so many people are keen to put money aside.

He commented: "There are many other saving options available where money could work much harder, and, depending on individual's goals, could be invested more tax efficiently."

Justin Modray, owner of financial website candidmoney.com, recently suggested that people should set up direct debits linked to their savings accounts, as this will help remove the temptation to dip into the money.

This will also help them commit to a long-term savings goal, the expert added.