According to research commissioned by Aviva, not earning enough to cover living expenses, not wanting children to go without and struggling to resist buying new things mean half of all adults overspend by almost £150 a month.

The report also found that millions of spend-happy Brits are failing to put money aside into savings or pay into pensions because they do not have any money left over at the end of the month.

Tim Orton from Aviva said: ‘’It has been a tough few years for people financially. Money has been tight, but worryingly, rather than cutting back, it seems there are some who are continuing to live way beyond their means.

“Given the level of debt in the country and an ageing population it’s hard to see how future governments will be able to support people in the way they have in the past. Building personal debt now, let alone failing to make any provisions for retirement, could lead to significant problems in the future.”

With so many living beyond their means, the report highlighted that savings and pensions are being neglected with around one in seven saying they never put money aside.

Just 55% currently contribute into a pension, paying an average of £105 per month. Of those who don’t, 42% said they don’t have the extra money to put aside at the end of each month, while 17% are concentrating their spare funds on paying off debts.

More than one in ten considers themselves too young to have to worry about their retirement yet.

Orton added: “Making some small changes to our spending can have a big impact on the pot of money we end up with in retirement. Simply taking lunch to work each day or not buying a morning coffee can equate to £20 per week, £80 per month, £960 per year or the equivalent of more than £40,000 over an average working life.

“Furthermore, because of the tax relief you receive on pension contributions, for every £80 per month you pay into your pension the Government pays an additional £20 per month, for most people.”