Those close to retirement age have been warned that even with a new £140 a week state pension in the pipeline it will not be enough to see them through retirement.
The new pension will put pay to the myriad of top ups which are part of the age-related benefits system today.
According to the Joseph Rowntree Foundation, the minimum a pensioner needs for an 'acceptable' standard of living is £200 a week. John Lawson, pensions expert at Standard Life, warned that savers need to 'clearly recognise that £140 a week will not likely be enough to live on in retirement'.
Martin Palmer, of Friends Life, told consumer finance website Thisismoney: 'There isn't a great silver bullet out there to solve the pensions crisis. Even increasing the state pension to £140 a week won't solve the problem.
'The reality is that people will have to work longer. Retirement for those not in the position to work longer – for health reasons for example – is going to be a meagre existence.
'The only way to make sure your retirement matches your expectations (not even your dreams) is to start saving.'