Two thirds (64%) of savers are concerned about the impact that inflation will have on their personal finances, according to a new report.

This rose to 70% for those aged 43 to 56.

A quarter (24%) of 2,000 adults surveyed by Opinium for Aegon in December were very concerned about the financial challenges they may face as a result of soaring inflation which topped 5% recently.

Rising home energy prices (65%) topped the list of worries. For those over 76, some 80% said this was their top concern.

Other concerns included rising petrol prices (48%), not being able to save as much money (37%) and the purchasing power of cash savings decreasing (36%).

Steven Cameron, pensions director at Aegon, said the research shows a high proportion are concerned about the immediate impact of inflation on the affordability of every day living.

He said: “Undoubtedly, those on a fixed income face a tricky time ahead, and these include pensioners who will be significantly impacted with a sizeable gap between the current 5.1% inflation level and the much lower 3.2% used to calculate next year's state pension increase.

“A high proportion of those we surveyed said that they were concerned about not being able to save as much as a result of rising inflation as well as the purchasing power of cash savings decreasing. Those holding large amounts in cash savings are particularly at risk from high inflation.

“Despite the Bank of England raising interest rates in December to 0.25%, any of this increase passed on to savers is likely to be outweighed by inflation decreasing purchasing power.”

Research was carried out by Opinium on behalf of Aegon UK in December among 2,000 UK adults.