People are more inclined to spend money on everyday luxuries rather than put money aside in savings accounts for their retirement, research shows.

Findings from Prudential reveal that almost three million non-retired Brits spend cash on holidays rather than putting money aside for retirement.

Vince Smith Hughes, head of business development at Prudential, commented: "I'm sure we would all like to be able to continue topping up our tans occasionally or going out for meals after we have retired."

He urged people to think about the long-term implications of their spending patterns before splashing the cash on little luxuries.

Research from Santander recently revealed that Brits are now putting 12 per cent more into their savings accounts than they were this time last year.

It is estimated that the average person deposits £144 per month into their accounts, with men generally putting more money aside than their female counterparts.