According to a new report by Scottish Widows, people in their 20s now are most concerned about the potential impact of care costs in later life. 

In contrast, just a quarter of their parents’ generation is worried that care costs will be a priority.

Half of respondents in their twenties believe that their income in retirement will be lower than that of their parents.

Over a third who worry said they think they will retire too late in life to be physically well enough to enjoy the things that they want to do, including travelling and pursuing hobbies.

This is in comparison to just one in five of respondents in their fifties who expressed the same uncertainty.

Data published earlier this month showed that 8.2 million people are enrolled in a company pension scheme, the lowest number since 1953.

Previous research from Scottish Widows found that a 30 year old starting to contribute into a pension for the first time would need to save £1,000 per month every year to meet their expectations for an average income in retirement of £25,200.

Mike Teall, head of annuity propositions at Scottish Widows, said: “It is a concern that so many young people are already feeling anxious about their financial outlook and health in later life. We realise that their priorities may be paying off debt or saving towards a deposit, however starting to save at say 20 instead of 30 can make a huge difference to your income in retirement.

Despite the high levels of anxiety, the report found that the younger generation is failing to address the problem by not planning for the future.

Just 4% currently class saving for a pension as a financial priority.