Two in five British people do not have any pension arrangements in place, according to research from Fairinvestment.co.uk.
A study of 2,000 British workers also found some people are moving their pension contributions into their savings accounts, despite losing out on generous tax relief.
Fairinvestment's survey found 39% of Britons do not have a pension plan, with younger people particularly likely to have no retirement savings.
Furthermore, 20% of those with a pension have suspended or reduced their payments since the onset of the credit crunch 18 months ago.
More than one in ten people have completely stopped contributions to their pension, while a further 9% have cut their contribution level.
Sharon Bratley, a chartered financial planner at Fairinvestment, says: "It is understandable that people have had to cut back on pension payments, but the more people save now the more comfortable they will be in the long run.
"By saving on a regular basis, investors actually benefit in times of falling stock markets as their fixed monthly contribution buys more units as unit prices fall, the effect of which can really be seen once markets begin to rise again."
The survey also found 6% of those with a pension had started contributing to their savings accounts instead, as they were worried about the volatility in investment markets, despite losing out on tax relief for pensions.
Bratley adds: "Markets may be unpredictable in the current climate but as long as the investment is long term there is nothing wrong with investing in a pension that is likely to offer higher returns than savings accounts are at the moment."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November