Financial services providers, trade associations and charities have come together to urge people to think more seriously about saving for their retirement.

In a letter to the Daily Telegraph, the personal finance experts voiced their concerns that people were underestimating the amount of money that would be required in order to live comfortably in retirement, saying that people needed to save more, and start saving sooner.

They worry that government reforms, due to be introduced in 2012, will put people off planning for their retirement until then.

"We must not let the unprecedented level of public interest in pension reform lead to inertia in savings decisions because that reform is not planned to take effect until at least 2012," the letter read.

"Industry experts calculate that by delaying saving until 2012, a 25-year-old on typical earnings could see his or her pension pot at retirement reduced by more than £36,000 in real terms - almost 20 per cent of the total pot."

The signatories to the letter include Stephen Haddrill, the director general of the Association of British Insurers, and Gordon Lishman, director general of Age Concern.

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