The value of our pension pots has fallen significantly over the last 12 years, new figures show.
The Alexander Forbes National Pension Index found that a 30-year-old worker who earns a final salary of £48,450 will now have £13,000 less income from his or her pension than in the year 2000.
This is because we could expect to have a pension of two-thirds of our final salary at the beginning of the Millennium, but now that figure has dropped to 39%.
The figures are based on workers who pay 12% of their wages into a defined-contribution pension scheme.
Alan Carey of Alexander Forbes Consultants & Actuaries said: "The latest figures make difficult reading for people saving for their retirement, but the news is not all bad.
"Pensions remain one of the most tax-efficient ways for people to make long term savings; many employers make generous contributions to DC pension savings, which is in effect additional 'deferred pay' for workers and by taking advantage of workplace 'salary sacrifice' people can boost their pension savings further.
"The real message of this year's National Pension Index is that people need to understand and take control of their own pension savings as soon as possible, as a few low cost changes made early can make all the difference to people's financial security in retirement."
One way people can take control of their pension savings is by starting to pay into a pension scheme as early as possible - which is why children's pensions have become more and more popular in recent months.
Read on for more information on how to start a pension plan for your children.