Ian Naismith, head of pensions at Scottish Widows, said that many people are “reluctant” to place their money in schemes they cannot access until they are 55.

“A lot of people are thinking it might be good to have something if they are saving for the long-term that they can get to earlier on,” Mr Naismith claimed.

Under the current legislation governing pensions, people have the option of saving in an individual savings account for a long period of time before transferring their funds to a pension later on, he added.

Last month, Scottish Widows reported that 42 per cent of people over the age of 55 admitted that the state pension would not provide them with enough of an income to achieve their desired standard of living.

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