Workers will need to save “far more” than 10 per cent of their salaries just to get the same provision as today's pensioners according to a report by the Faculty and Institute of Actuaries.
Young people may have to pay as much as three time the amount paid by their parent's generation.
The actuaries urge pension providers to give contributors more information about the real costs of pensions in the future.
30-year-olds who contribute10 per cent of their salary can expect to have a pension of just 24 per cent of salary at retirement age.
Chairman of the working party and co-author of the report Paul Meredith says: “We believe that there is a pension cost crunch ahead.”