Under-35s are not a spendthrift generation, but are struggling to save owing to daily financial pressures and low wages, the Pensions and Lifetime Savings Association said. The cost of living and low salaries were the biggest barriers to saving.
The association's research suggested that the majority were not racking up debts, outside of student loans. About a third were saving for a rainy day and a third were saving for a one-off such as a car, holiday or television.
Joanne Segars, chief executive of the association, which represents pension providers, said: "The 18-35 year olds are no different to many people - they want to save for a secure future, but short-term financial pressures get in the way. It is not surprising that without help, this group prioritises short-term over long-term saving, given the current rock-bottom interest rates and low wage increases."
Alistair McQueen, savings and retirement manager at Aviva explained "The gap between wages and property prices continues to widen. Faced with these property pressures, it is understandable that the need to save for retirement can feel like a luxury few can afford,"