Many consumers put off taking out a pension as they intend to seek advice on the matter from a professional, it has been stated.

Churchouse Financial Planning stated that having any form of retirement savings is preferable to having none at all, but noted that seeking professional advice is essential in this area.

Keith Churchouse, director of the group, commented: "If it is a toss-up between taking professional advice and doing nothing and buying without advice, I would rather people bought without advice and then got on with it."

Mr Churchouse added that a common mistake made by consumers when taking out a pension is making the wrong choices regarding funds and misunderstanding risks involved as fund values can go down as well as up, a fact some consumers may not be aware of.

According to the Pensions Commission, some 11.7 million employees make no contribution to a private pension.