Hard-up pensioners are being forced to run down their life savings to survive, a new report from Skipton Building Society reveals.

The research found almost a quarter of pensioners with a tax-free ISA account are dipping into their savings to meet living costs as food and energy prices continue to rise.

A detailed study of more than 2,000 people from across the UK aged 50 and above revealed that four in ten admitted withdrawing from their ISA to pay for heating and electricity bills, food shopping, and to supplement a pension.

A third of respondents said when they opened their account they wanted to put the money aside and never touch it and 46 per cent said their original main reason to save was for the future.

Stacey Stothard, corporate communications manager at the society, said: “Despite reaching an age where people expect themselves to be financially more comfortable, people approaching and living through retirement are increasingly finding the opposite.

“They have made wise choices in taking advantage of tax-free savings, putting their well-earned money into ISA accounts. And many have built up a tidy nest egg of tax-free savings. But they are now finding that the cost of living has sadly increased too – so much so, that they’re having to withdraw their savings simply to afford to live.”

The study shows that one in three respondents have contributed to a cash ISA account for more than a decade. But more than half of pensioners said they now only made occasional deposits into their account. Forty five per cent of respondents said they had made withdrawals, rising to 51 per cent of those aged between 50 and 59.

One in ten of those aged over 70 said they needed to withdraw money to supplement their pension.

Stacey Stothard added: “Instead of being rewarded for saving over the years, many people now have little option but to start draining down their ISA balances, just to get by. At a time when younger members of the family are feeling the squeeze so too are their parents, who are facing the prospect of reduced retirement income and financial uncertainty. While there are factors out of their control, one step people can take to really make the most of their savings is to have a comprehensive savings portfolio.”