Many young people face poverty after retirement because they are failing to join pension schemes as young workers did in previous decades, the Trades Union Congress said on Thursday.

Government research showed that fewer than half those under 30 were saving for a pension, creating a potential pensions "time bomb".

Forum Response: Association of Consulting Actuaries

A spokesman for ACA said: "The ACA is very concerned that there appears to be a growing number of people - particularly young people - who neither take up occupational pensions nor private pensions.

"Because the cost of running an occupational pension scheme has risen so much in recent years due to extra requirements set by government, changing demography and lower investment returns, fewer companies can afford generous final salary based commitments.

"This move is likely to continue apace as the government imposes further regulatory controls arising from the Pensions Bill currently in parliament.

"As it undoubtedly remains the case that employees value occupational arrangements, the ACA would like to see more organisations look at lower cost occupational pensions, perhaps with lower accrual rates or more modest benefit targets, rather than abandon arrangements.

"The ACA also supports initiatives that are designed to encourage employees to join pension arrangements, particularly at younger ages.  The government is piloting a number of initiatives under their 'Informed Choice' agenda that might help to kick-start higher pension take up, but - of course - the cost of repaying higher student loans and higher mortgage commitments mean that many young people have little money available for pension savings.

"This is exactly why it is so important to re-establish the previous British habit of good, company schemes in the workplace."

Forum Response: Prudential

A spokesman for Prudential said: "Saving early has a huge impact on the size of your pension. For this reason we need to make it easier to confront decisions about retirement and resist the temptation to put  them off for another day. Not taking action can be costly.

"The workplace is a key arena for fostering a culture of savings, and Prudential has a range of initiatives and policy proposals that could help young people unlock the benefits of workplace pensions."