By Daniel Hunter

Two thirds of non-retired people are not paying into a pension, with one in ten saying the best age to start saving for retirement is in their fifties.

A major study by the Money Advice Service reveals how people are managing their money and saving for retirement. Only 28% of UK adults are paying into a pension. One in seven people aged under 35 think it is better to start paying into a pension in their fifties rather than in their twenties.

The Financial Capability of the UK report also shows that just over half of people think a pension is the best way to save for retirement, rising to 60% of those aged over 55. Nearly a third of people neither agreed nor disagreed, suggesting they may be open to persuasion.

While those approaching retirement feel pensions offer a good vehicle, 35-44 year olds have other plans. Nearly one in five of this group expect some inheritance and a similar proportion expect to, in some way, use the value in their property. This raises issues if parents use the money they might otherwise leave to their children to finance their own senior years.

Retirement is inevitable, so how you plan to fund it is just too important to ignore.

“The good news is that it’s never too early to start saving for retirement. As 90% of employees being automatically enrolled into workplace pensions are staying in, this is providing a solution for many. And whether you think you’ve left it too late, or you’re at the start of your working life, we at the Money Advice Service are always able to help, with our range of free, impartial tools and tips,” said Jackie Spencer, a retirement and pension expert at the Money Advice Service.

The Money Advice Service report was conducted by Ipsos MORI's Social Research Institute, involving interviews with 5,079 UK adults in April and May 2013.