New research reveals that workers who’ve never saved into a pension may need to save more than a third of their annual salary in order to secure a reasonable pension but young Brits aren’t planning ahead. 81% of 18-24 year olds admit that they expect to receive less than they need to survive on retirement.

22% of Brits planning to retire in 2009 will rely on the state pension, and at less than £5000 a year (£95.25 a week), Britain is at the bottom of the OECD (Organisation for Economic Cooperation and Development) pensions league table with the least generous arrangement in western Europe.

The later we leave pension planning the more it costs us. 30 and 40 year olds just beginning to save need to put away more than £400 and £700 a month respectively. With 2 million British pensioners now trapped in poverty, a serious lack of planning, an aging population, unemployment at an 18 year high and pay freezes countrywide, the situation is only set to worsen.