Almost half of Britain's ten million pensioners have been forced to cut back on spending during the last three months, according to Prudential's Retirement Index.

The research also indicates that 20 per cent of pensioners in the UK are struggling to meet their financial commitments and that over 200,000 - 2 per cent - have considered resorting to crime, or have done so, as a method of supplementing their income.

A spokesman for the DWP told ePolitix.com: "The government is absolutely committed to tackling pensioner poverty.

"That is why we are introducing the new Pension Credit, replacing the old Minimum Income Guarantee, which will reward pensioners who have made modest savings for the first time.

"It will be payable from October and the average pensioner credit household is set to benefit by approximately £400 a year.

"Compared with the 1997 system, as a result of the government's measures including the Pension Credit, on average pensioner households will be over £1,250 a year better off in real terms - around £24 extra a week.

"We have also taken many other steps to help alleviate pensioner poverty such as free TV licences for the over 75's, Winter Fuel payments and the 80-plus annual payment."

Forum Response: Prudential

Roger Ramsden, director of marketing at Prudential, said: "Our research shows that the need to stay abreast of financial matters doesn't stop when you leave work.

"The number of pensioners who feel their low household income restricts them from leading a comfortable life in retirement has consistently risen since we started the Prudential Retirement Index last year. Many now struggle to meet their financial commitments and almost half have cut back on overall spending in the last three months alone - this is an extremely worrying trend.

"Simply letting retirement sneak up on you is not an option. But information to help plan ahead can be difficult to obtain. Two out of three retirees had received no financial advice leading up to retirement, according to our research.

"That's why we have published the Prudential Retirement Guide, an informative and practical source of information for people approaching retirement or for those who have already retired - it covers topics such as ways to supplement your retirement income, along with information on how to enjoy the years ahead."

Forum Response: Age Concern

Gordon Lishman, Age Concern's director-general, said: "In spite of political pronouncements, one in five pensioners in the UK continue to live in poverty whilst £1.8 billion in income-related benefits remain unclaimed. This is a national disgrace.

"The government must take radical action to shake-up the system, ensuring the state pension remains the bedrock to a secure retirement income."

Forum Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, told ePolitix.com: "The Prudential Retirement research provides an interesting reflection on the lives of older people. Certainly, the fact that 20 per cent of older people who are struggling to meet their financial commitments is of little surprise.

"This research provides further evidence that confidence in private pensions arrangements has collapsed and that we have an impenetrable benefits system.

"Government really must face up to the challenge of ensuring today's and tomorrow's pensioner population can live a comfortable older age."