8.3 million people are not saving anything at all for their retirement. That represents some 31% of Britain’s working population. A further 3.8 million are not saving enough.

The data comes from consumer research conducted annually by the Association of British Insurers who also said that a large majority of people are in favour of the Turner Report proposal to automatically enrol employees into a pension scheme.

One key reason for not saving enough is identified by the research as the level of debt which people have built up. The survey showed that average non-mortgage debt is nearly £9,000 per household. In many cases, this will be a major factor in people’s failure to save.

And with Lord Turner setting out his proposals last week for a national savings scheme, the ABI’s research shows that trust in the government to deliver on their pensions promises is very low, with only 23% of working people saying that they trust the government in relation to state pensions. Conversely, 74% of people in work-based pensions do trust their employer to deliver on their private pensions.

Helen McCarthy, the ABI’s head of pensions and savings development, said: "The government and the pensions industry should take careful note of our findings, which paint a bleak picture of the state of the nation’s savings right now. However, there is clear evidence that if the right action is taken on pension reform, many millions of people will begin to save, and save more, for their retirement."

"Lord Turner’s proposals on automatic enrolment are a step in the right direction. But the government must be careful not to turn people off saving. The private sector, with its expertise and experience in running pension schemes, must play a big part in taking Turner forward."