According to government figures, less than half of those under 30 are currently saving for a pension.

The TUC claims young people are failing to contribute to pensions for a number of reasons.

Employers stopping pensions contributions, scandals and mis-selling allegations, too much choice and unnecessary complexity have all contributed to the trend, argues the union.

TUC general secretary Brendan Barber said: “Young people have started a slow pensions timebomb.

“Unless they take out pensions a generation faces poverty in old age, dependent on the generosity of whatever government is in power.

“We used to think that slowly but surely we were all getting more prosperous. That’s not likely to be true in retirement unless these trends change.”

He went on to urge employers to begin making pensions contributions again, a factor which is believed to encourage employees to start saving.