Many people are still reluctant to put money into a pension, despite the knowledge that a state pension will be inadequate, according to AEGON.
Head of Pensions development at AEGON Rachel Vahey says that today’s "living for today" mentality means many think they simply cannot spare any money for a pension plan.
However, the group maintains that it is still possible to save for retirement by carefully reviewing your expenditure.
Ms Vahey continued: "When you take a good hard look at your expenditure, then it is amazing to see where you can save some money and where you can make some savings toward your pension."
She explained that figures from the national association of pension funds show that nearly three million employees are not enlisting in their employers' pension schemes and are therefore "really turning down free money".
Statistics from the Scottish Widows Pensions Report 2007 show that 40 per cent of those currently with no pension scheme do not think they will ever start to save.
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