With all the bad news surrounding pensions, you could be forgiven for wondering whether there is any point in saving for retirement at all.
However, the ageing population means that, for most of us, there will be little support available from the state by the time we come to give up work.
Even now, figures from pension provider MGM Advantage show that more than 600,000 retired people have had to return to full or part-time employment since they "officially" retired due to financial constraints.
So if you want to be able to enjoy your golden years without having to keep working until your very last breath, it is a good idea to get your retirement savings in order as soon as possible.
You can request a call from a regulated pensions adviser through moneysupermarket.com.
Here, we explain what exactly is happening to pensions and how you can improve your chances of getting a reasonable level of retirement income, as well as looking at the alternatives to saving into a pension scheme.
Why are annuity rates so low?
Annuities offer a guaranteed monthly income to those who have saved into a pension pot.
Around 50,000 people a year buy an annuity, investing up to £20 billion of their hard-earned cash.
This is largely because it is the only way to turn at least some of your pension fund into an income.
But those approaching retirement today face the dire prospect of getting only about half the income they would have received 15 years ago.
The main reason for this is that annuity rates have plummeted to record lows.
Investment firms such as Aegon and Aviva have recently started slashing their annuity rates and experts are now predicting this downward trend will continue due to low gilt yields and, of course, the ageing population.
Tom McPhail, head of pensions at adviser Hargreaves Lansdown, said: "Annuity rates are likely to fall further in the immediate future and that makes it even more important than ever to shop around for the best possible deal."
About two thirds of pension investors buy an annuity through their pension provider, with out even checking whether they could get a better deal on the open market.
But you could boost your income by 20% or more a year by finding the best possible annuity rather than simply opting for your pension provider's best offer. That could make a substantial difference to your quality of life in retirement.
You can also choose between annuities that keep pace with inflation or simply pay out a fixed amount each year. You should seek professional independent financial advice to help you choose the right annuity to suit your needs.
What is happening to company pension schemes?
The halcyon days of "jobs for life" and gold-plated final salary pensions are long gone - apart from in the public sector - and there is nothing any of us can do about it due to the crippling cost of these schemes.
The pension deficits of FTSE 100 companies have jumped by £15billion this year to a total of £65billion, according to accountants KPMG.
Now, however, fears are growing that government efforts to prevent workers retiring with no pension savings could backfire by forcing companies to cut their contributions - meaning that hard-pressed staff will have to meet the shortfall.
From 2012, all employers will be required to enroll all their employees who do not actively choose to opt out into a company pension scheme of some kind.
But a study by the Association of Consulting Actuaries indicates that many of Britain's largest employers believe the change would force them to scale back the generosity of their current schemes.
Almost half said the new regulations would force them to reduce the contributions they made on behalf of existing members to pay for the extra costs of enrolling millions of new workers.
Under the new rules, known as "auto-enrolment", companies will only have to contribute the equivalent of 1% of a worker's salary, rising to 3% in 2017.
Currently, though, employers contribute an average of 6.1% of workers' salaries into their pension funds.
Even halving this to the 2017 level of 3% will therefore have a huge impact on the value of the schemes once people come to retire - leaving workers themselves to meet the shortfall now or suffer for it later.
So how much do I need to save?
Most people vastly underestimate the amount they need to save to have a comfortable retirement.
And that's hardly surprising considering you need to save about £300,000 just to be sure of an inflation-proof income of £1,000 a month in retirement.
Not all that cash has to be ploughed into a pension fund, though.
What are the alternatives?
There are tax advantages to investing in a pension.
If you save into an employer-run pension scheme, for example, your employer will generally take the pension contributions from your pay before deducting tax.
You only pay tax on what's left. So whether you pay tax at 20%, 40% or 50%, you get the full relief.
Meanwhile, for those with personal pension schemes, income tax is deducted from your earnings before any pension contribution is made, but the pension provider claims tax back from the government at the basic rate of 20%.
This means that for every £80 you pay into your pension, you end up with £100 in your pot, while higher-rate taxpayers can claim the difference through Revenue & Customs.
But pensions are not the only tax-efficient savings vehicles.
ISAs, for example, can be used to save cash, or to invest in stocks and shares if you are prepared to take an element of risk in the hope of better returns.
The maximum you can put in to an ISA is £10,200 in each tax year - up to £5,100 of which can be saved in cash - on which you pay no tax on the interest or the dividends received, or on any profits made.
Diversification makes real sense when saving for retirement, so having a mixture of pension and non-pension assets is good practice, particularly as this gives you additional flexibility when it comes to taking benefits. Again, you should seek independent financial advice to help you find the right investments to suit your needs.
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