The report from the Consumers' Association calls for a nationwide chain of drop-in centres offering free financial advice to be set up.

Financial health service advisers would deal with issues such as pension provision and debt and be able to recommend basic investment products.

The service would be targeted at people on low and medium incomes.

Disenfranchised

David Skelton, a Clerical Medical spokesman told the report's authors that this was the only way to counteract the UK savings shortfall.

Mr Skelton added that many people were discouraged from saving because they felt "financially disenfranchised" as they couldn't afford independent advice.

Independent financial advisers (Ifas) often charge up to £150 an hour for their services.

As a result, even a basic financial review can cost clients more than £1,000.

Something for nothing?

The report stressed that the financial health service would compliment networks of independent financial advisers rather than replacing them.

David Elms, chief executive of the Independent Financial Advice Promotion (Ifap) gave the idea a cautious welcome.

"Anything that extends the reach of advice is a good thing but the quality on offer has to be in doubt. Unfortunately, though, you rarely get something for nothing," he told BBC News Online.

Instead, the financial health service centres could be a first point of entry for many, getting people saving for retirement sooner rather than later.