Pensions are considered untrustworthy by 70 per cent of people in the UK, with a generation divide showing younger people to be more positive about retirement income than older, says PricewaterhouseCoopers LLP (PwC).

Research by the professional services firm has also shown that women are less sure of pensions than men, with 28 per cent of them, compared to 33 per cent of men, saying they have faith in them.

Raj Mody, a pensions partner and chief actuary at PwC, said: "At the same time that companies are grappling with how to repair past pension deficits and carrying out major reviews of their future pension provision, it appears that employees do not necessarily value or trust pensions as a savings opportunity in the first place. This is a crazy situation for employers - pensions can still be an effective way of saving for retirement for many people but a reality check for all parties is needed. Employers need to reconsider the role and value of pensions as part of the employment deal, while employees have to act to avoid a very low income retirement."

Mody said companies must remain committed to making pensions arrangements simple and durable, and added that the Government has a critical role to play in ensuring fiscal and legal stability when it comes to pensions.

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