The proportion of 16 to 24-year-olds who expect to retire before they are 60 has fallen from 37 per cent in 2000 to just 26 per cent today, according to Virgin Money.

The proportion hoping to retire before 50 has fallen from 7 per cent to 3 per cent, while the proportion expecting to have to continue to work beyond the age of 66 has risen from 9 per cent to 13 per cent.

Scott Mowbray of Virgin Money told This is Money, “’The dream of early retirement is over.

“They are not saving enough, They know they are not saving enough and they are not prepared to do anything about it. A choice has been made and living for today has won over saving for the future.”

The news is little better for slightly older workers. A recent survey conducted by YouGov showed that 20 per cent of all 30 to 50-year-olds had made no provision at all for their retirements.

Mr Mowbray warned, “’Putting just a little extra money aside every month now, will dramatically improve their chances of retiring at 65 or sooner. Young workers have the best opportunity to make a difference to their retirement pots but they need to act now.”