With only 3 per cent of UK employees confident that the state pension will be a sufficient source of income, many are demanding more action from the government to safeguard their retirement, research from Herbert Smith Freehills Kramer has found.

The survey showed that fears of underfunded retirements are fuelling calls for intervention, with 41 per cent of UK employees arguing that it is the government's responsibility to supplement the state pension.

Meanwhile, one in five (20 per cent) say that government should act because the option to opt out of auto enrolment may cause problems in later years.

These calls for the government to address ‘pension poverty’ come amid deep doubts over retirement security. Only 21 per cent are “very confident” that their own pension pots will sustain them through retirement and more than a third (35 per cent) fear they will run out of savings altogether.

Despite growing concerns about financial security in retirement, 3 per cent of employees – equivalent to 4.5m people – are not currently saving into a pension, or don’t intend to do so.

This is a particular issue among the younger generation as less than a fifth (18 per cent) of 18-24-year-olds have a private pension, even though only 20 per cent expect the state pension to support them in later life.

HSF Kramer pensions practice UK and EMEA managing partner, Samantha Brown, said: “A significant portion of the population seems to be taking a casual approach to long-term financial security.

"Yet this approach risks ensuring funds will be adequate to meet retirement needs, putting pressure on schemes to manage greater uncertainty and potential shortfalls.

“For trustees and providers, this means a heightened need to educate members, monitor fund health, and prepare for more complex financial planning and risk management."

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