According to the firm, the average Briton starts taking financial precautions for their pension at the age of 28, six years younger than the French or Spanish and ten years earlier than the average Hungarian.

Although he said the figures were “encouraging”, Steve Folkard, head of pensions and savings policy at AXA, warned that many are still leaving pension planning far too late.

He said: “Young people today think retirement is far off and that pensions are something they do not need to worry about, yet figures do show that the earlier you begin saving the greater then benefits when people hit retirement.”

In 2006, there were 11.4 million people of pensionable age, according to Age Concern.

However, the charity predicts this figure will rise to 12.2 million by 2011.

It shows that comprehensive cover rose by 2.4 per cent over the last quarter and third-party, fire and theft (TPFT) by 1.4 per cent.

An average annual comprehensive policy will now cost £629,04 and £628,60 for TPFT, the firm claims.

John Close, insurer relations director at the AA, stated that the rising figures are due to the ten per cent annual increase in personal injury claims and five per cent rise in accident damage repair costs.

He explained that the new technology used in cars such as crumple zones, secondary safety systems and lightweight materials, is expensive to repair.

“The irony of this is that you are much less likely to be killed in a serious accident - and are thus more likely to make a personal injury claim,” Mr Close said, explaining that this cost will impact upon car insurance premiums.

Norwich Union recently advised motorists to look online for the best cover quote.

The advisory firm claim that although the UK is not currently in crisis, if the present savings culture continues, there are “major problems” ahead.

“People are finding it very tough to put money aside each month for long-term or even short-term savings,” commented Colin Jackson, director of the company.

“Things ain’t looking good,” he added.

Mr Jackson said that although the base rate has been cut, there is no guarantee that interest rates will follow. He explained that with increasing living costs and mortgage payments, there is less leftover to save.

Credit Action reports that total UK personal debt reached £1,391 billion at the end of October, a 9.7 per cent increase over the previous year.

Total consumer lending stood at £222 billion during October, having increased by 5.8 per cent over 12 months prior.

The online consumer guide claimed that credit cards provide more legal protection and that by signing up to new security schemes run by banks, they can keep their identity safe.

Schemes are being launched allowing shoppers to register their credit cards with their bank and to apply a password that must be used during transactions.

“This protects you against identity fraud and identity theft because the retailer whoever they might be knows that you have that card in your possession and that only you know the password,” said director of shopsafe.co.uk Simon Crisp.

People should also use sites that have been recommended and ensure they print off receipts, he added.

Consumer group Which? recently reported that 69 per cent of Brits will do their shopping for Christmas over the internet this year, in order “to avoid the crowds and compare prices more easily”.

According to Stephen Rose of the Debt Advice Bureau, it is entirely possible that the lender may never see the money back.

Loans between friends and family that are never paid back, or are paid back late, can lead to all manner of disagreements, he explains.

And if the loan has come from the lender’s savings, it can sometimes jeopardise their financial situation as well, he cautioned.

“There are cases where the person who borrowed from a family member wants to pay them back over and above [repaying] the proper creditors… That can result in bankruptcy restriction orders,” Mr Rose revealed.

Recently, Abbey conducted a survey which found that more then three million people had fallen out with friends and family over an unrepaid loan.