According to the Occupational Pensioners Alliance, only 46 per cent of UK adults are currently members of a pension scheme.

Des Hamilton, technical director of The Pensions Advisory Service, says that young people are using their savings for more immediate products like cars or holidays.

"Young people want to enjoy themselves, and therefore it's the now rather than the future that takes up their attention and spare income," he said.

He went on to warn that people are not considering pensions until around the age of 50 and by then it is too late to save a substantial pension fund.

The government has announced a personal account pension scheme is to come into place in 2012, which will ensure more Britons are saving towards a pension. The scheme is to be opt-out rather than opt-in which could mean more people will be saving for the future.

Credit charity CCCS research shows that more debt among 21 to 35-year-olds is in personal loans than on credit cards. It also shows the average debt for someone in this age category was £22,819 in 2005.

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