UK savers can expect to receive 29 per cent of their salary while working in retirement from mandatory components, like the state pension – less than half the OECD average of 63% according to a latest OECD report.

AJ Bell senior analyst Tom Selby said pension systems around the world are shaped by a combination of social, economic and political factors. “Some place a greater emphasis on collective provision, while others – including the UK – have as strong private pillar to supplement state income.”

He added: “This report emphasises the importance of maintaining incentives to save and ensuring people have confidence that the rug won’t be pulled from under their feet by politicians prioritising short-term cash generation over long-term policymaking.

“Countries such as Sweden have managed to build cross-party co-operation into their political system to encourage stability – a similar deal in the UK could be transformational and encourage more people to save earlier for retirement.”

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