B&CE calls for increased pensions education

A survey from the employee benefit provider also found 93pc do not know what the basic state pension is and more than half – 63pc – have no idea what they will be entitled to on retirement.

Pension awareness was lowest in the 16-24-year-old age group, with a massive 93pc not knowing what they will be entitled to at retirement. However, 48pc of those in the 55-64 age group do not know of their entitlement either.

The study also found nearly two in five, 38pc, believe free personal advice from a financial expert would help make pensions easier to understand.

Deputy chief executive John Jory said: "We need to do more to educate people about the reality of the state pension and what this means in monetary terms. Just as holiday pay does not cover the cost of a holiday, the basic state pension will not cover more than a basic level of subsistence.

"People should not expect to continue the standard of living they have enjoyed throughout their working life at retirement unless they have saved in a pension. Perhaps we need to step away from the term ’pension’ and re-name those funds ‘retirement pay’."