Pension: Britons urged to choose pensions over savings due to poor interest rates

A practical solution, then, is likely to be found by investing in a pension for later life.

Mr Cameron continued: “Pensions however, benefit from government tax relief and £100 saved into a pension immediately becomes £125 if you’re a basic rate taxpayer.

“By investing your money in the stock market, you also increase your chances that it will grow further over time.

“If you achieved a return of 4.25 percent a year on your initial £125, it would be worth £354 in 25 years’ time.

“Furthermore, if you’re lucky enough to work for an employer who’ll match your pension contributions, the benefits of pensions are even better as the £125 personal contribution including tax relief will be boosted by an additional £125 from your employer.”

However, while saving for the future has arguably never been so important, making sure individuals are financially secure in the present is also key.