The data, from London-based wealth manager Tilney, came as the UK’s savings ratio slumped to the second lowest level in 20 years at just 4.9p per £1.

Half of those who did not save anything cited lack of money left after their outgoings as the main reason for not preparing for their financial future.

Among those saving for retirement, the levels committed were said to be “well below” those required to provide an adequate retirement income, with just 12% of UK adults committing more than 10% of their earnings towards their retirements.

The figures also showed that women were saving less than men, with a “worrying” 71% saving less than 5% into their pension pot each month, compared with 59% of men.

The majority of those surveyed (52%) believed that saving towards retirement should start in your 20s.

Key findings included:

• 35% of adults are saving nothing towards their retirement


• Despite this, 52% think people should start saving for their retirement in their 20s


• 12% are saving more than 10% of their salary


• 43% say their preferred long-term saving method is cash. This compares to just 11% choosing pensions 


• The top three financial priorities overall are staying out of debt, having a comfortable and secure retirement and regular holidays 


• Top financial priority for millennials is holidays (37%)


• A secure and comfortable retirement only becomes the top financial priority for those aged 55-64 


• 83% of women and 67% of men either not prepared to take any risk of losses

Despite a decade of low interest rates and negative real returns on cash after the impact of inflation, 43% favouroed cash rather than any form of investment for their long-term savings, the study of 2,000 adults surveyed in February, revealed. 

Andy James, head of retirement planning at Tilney, said: “It is clear from the findings that the British public is woefully unprepared for retirement by both not saving enough and being too risk averse to generate the required investment returns to outpace inflation.

“This is going to cause a huge problem in years to come and is a situation that is exacerbated by the level of debt hanging over many young people like the Sword of Damocles.

“The ideal rate of retirement saving would be about 12%-15% of your salary.

“However, as we can see from the research, only 12% of the population is saving more than 10%.

“Leaving retirement saving until later in life will simply mean having to put aside significantly more each month to catch up to where you need to be.

“Pensions auto-enrolment is certainly part of the longer solution to bridging this gap but contribution rates are very low indeed at just 2% this tax year split between employers and employees.

“In the new tax-year the total contributions will go up to 5%, of which employers must provide at least 2% and the employee must make up the balance.

“People may not like these increases hitting their monthly disposable income but should think very carefully about the bigger long-term picture before deciding to opt-out and lose their employer’s contribution.”