Too few save for retirement

Only 17 per cent of people disagreed that putting money into a pension was the best way to save for their retirement, but just 48 per cent of people are currently saving for their old age in this way, according to the Department for Work and Pensions.

Young people are the most likely to be delaying setting aside money for when they stop work, with 80 per cent of those aged 18 to 24 and 50 per cent of those aged between 25 and 34 not currently saving.

Meanwhile, separate research by the Association of British Insurers showed that while people's confidence in the economy is increasing, the majority think the benefits of saving have fallen during the past year.

Only 12 per cent of people said they had started or increased the rate at which they were paying down mortgage debt compared with 24 per cent three months ago.