It said millions of workers could secure a better future if they made small changes to their saving habits now. Adding, while 11.9m people are still saving too little many of these workers were on the “right path” and could safeguard their futures if they saved slightly more.

The analysis found of the 11.9m, almost half are at least 80% of the way towards achieving their retirement income target, while only 8% are less than 50% of the way there.

Pensions minister Steve Webb said: “This coalition government’s sweeping reforms of the pensions system will make a huge difference to the long-term financial prospects of most working age people. But while the state will always provide a decent safety net so people can get by, anyone wanting to see their standard of living maintained into old age needs to make their own provision too.

“This new research shows that by saving just a little more, a huge number of working people could make their future retirement so much more comfortable.”