Britain could face 20 years of rock-bottom interest rates as economists believe desperate saving by people in their 50s and 60s will create a glut of cash that forces down market rates.

After 10 years of ultra-low interest rates since the financial crisis, this extra pressure from savings could mean another decade at sub-2pc interest rates, analysts at Berenberg Bank believe.

“Interest rates will be lower for (a lot) longer, potentially for at least another decade,” said Berenberg’s Nick Anderson.

“If this sounds unrealistic, history is clear. Across developed economies between the early Thirties and the mid Fifties, interest rates remained at very low levels. In the case of the US, Canada, the UK and the Netherlands short rates were close to zero throughout this two decade period.”

On average Britons are saving far less for retirement than they need to, if they are to enjoy the typical wish for income of roughly two-thirds of their working earnings.