The study found that just over a quarter of people are unable to save into a pension for a variety of reasons – the most common (for 48 per cent) being that they need any extra cash to cover day to day expenses.

Of those who are unable to make pension contributions, a further 23 per cent say they are more concerned with their debts, while 17 per cent are too concerned about the current financial climate, and its impact on the stock market, to make pension contributions.

Commenting, Simon O’Connor, head of products and marketing at Lincoln Financial Group said: “Clearly people’s finances are stretched at the moment. Unfortunately, this can lead some people to push pension contributions to the bottom of the priority list.

“However, we would suggest people look beyond their short term financial situation and start to make plans for their retirement as early as possible. This is especially important when you look at how life expectancy levels are on the up – so people need to make sure they are putting money aside for their later years.”

And, despite fears over pension returns, Mr O’Connor added: “Saving into a pension is still usually the most effective way of generating a retirement income; not only do pensions benefit from tax relief they also offer a good opportunity for income growth over the long term.”

And when it comes to tax relief, Unbiased.co.uk has discovered that pension savers are missing out on an extra £720million in tax relief by failing to make Additional Voluntary Contributions (AVCs).

Commenting, chief executive of Unbiased.co.uk, David Ems said: “Failing to save for retirement has become an increasing problem for the UK population. The onset of the credit crunch has further compounded this problem as the value of people’s pension funds is decreasing and they are also finding their money doesn’t go as far as it used to.

“A discussion with an IFA is a good way to ensure you are planning effectively for your retirement and get your financial planning in order,” he added.

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