Over-55s increasingly view a drop in return on savings as a threat to their financial health in the next five years.

Almost one in four (22%) surveyed said this posed a problem – up from 17% in Q2 2016 to the highest point in almost three years.

The last time concerns were this high was in Q1 2014 (24%), with this quarter’s jump coming against the backdrop of the decision by the Bank of England to cut the base rate in August from 0.50% to 0.25%.

Aviva’s latest Real Retirement Report revealed the figures.

The rising cost of living is perceived as a threat by 45% of over-55s as inflationary warnings after Brexit persist.

Also shown in the study was that average variable ISA rates have fallen below inflation over the last three months with interest earned down 68% since 2012 from £444 to £1402.

Over-55s’ average unsecured debt levels went up 15% since Q3 2015 to £1,904 with borrowing via credit cards and personal loans growing even faster.

However, typical monthly incomes have increased steadily over the last three years to their current level of £1,382 per month. With such a rise, two in five (40%) now cite current income as a source of their savings in Q3 2016, up from 34% in Q3 2015.

Aviva’s data suggests this has been supported by a rise in employment during later life. The percentage of over-55s receiving wages or other earned income in Q3 2016 was 40%, up from 38% in Q3 2015 and 34% two years previously.

Despite the potential for falling interest rates to reduce the cost of credit, Aviva’s findings also highlight a worrying increase in the average level of unsecured debt held by over-55s, which has risen by 15% since Q3 2015. Debt levels now stand at £1,904 – up from £1,662 last year.

Credit cards remain the most significant source of debt with an average balance of £840.

Rodney Prezeau, managing director, consumer platform, Aviva UK Life, said: “2016 has been a year of seismic change and it is still unclear what the long-term impact of the UK’s decision to vote to leave the EU will be. What is clear is that those approaching retirement have heightened concerns for the future following the decision to cut interest rates in the summer and through a growing consensus that inflationary pressures may start to kick-in next year.

“Rising inflation and rising interest rates would be uncharted territory for many.

“As we approach the start of a new year, it is important that people take time to seriously assess what wider macroeconomic changes could mean for them individually as they plan for the future, in order to ensure they start 2017 in the best possible position.”