Only 38% of staff aged between 18 and 34 said they trust pensions, but this drops to 26% for those aged between 35 and 54.
Raj Mody, pensions partner and chief actuary, PricewaterhouseCoopers, said: "This is a crazy situation for employers - pensions can still be an effective way of saving for retirement for many people but a reality check for all parties is needed. Employers need to reconsider the role and value of pensions as part of the employment deal, while employees have to act to avoid a very low-income retirement.
"There is an opportunity for employers and pension providers to take the lead in rebuilding trust in pensions. To do this, and close the perception gap between what pensions can offer versus what value employees think they are getting, there is a need for help for individuals with savings planning, use of simpler, non-technical communication, and easier access to individualised pensions information."
