A new survey has shown that households in the UK are struggling with finances, and those over 55 are finding things particularly tough.

Of nearly 2,000 polled in an annual Bank of England survey, more than 50% were having difficulties in making repayments for credit cards and other unsecured debts.

Almost a quarter (22%) said they were delaying spending as they were worried about their ability to borrow, and nine out of ten felt that were would be heavily impacted by the government’s spending cuts. Despite this, not even half had made preparations for the impending austerity measures; things like working more hours, searching for a new job or increasing their savings.

Age UK’s research into Silver RPI in November showed that inflation was hurting over 55s financially harder than previous predictions, and the Bank’s survey echoes those findings.

Managing director of Age UK Enterprises, Gordon Morris, said: “The impact of inflation on over 55s has been substantially underestimated and it worsens as you age, with over 75s experiencing cost rises on average 4% above official measures.”

The Bank of England survey backed this up, with almost 50% of households voicing concerns over their debt levels, with borrowing expected to get harder as credit availability had already worsened.