Contractors must take saving up for later life seriously, one expert has emphasised.

Keith Churchouse, director of Churchouse Financial Planning, said that people are not saving enough for retirement and they do not take doing so seriously enough.

He said that those hoping the state pension will see them comfortably through retirement will be "sadly disappointed".

Mr Churchouse explained that there is a gap in financial education for those between the ages of 25 and 45 who are unaware of how much money they will need to enjoy a reasonable retirement.

"Putting in place a range of savings arrangements for the future is well worthwhile, because it provides flexibility for people to choose how they use their money in later life," he added.

Contractors should also be saving up for their children's future, experts have suggested, as things are looking financially depressing for the future generation.

Simon Hartshorn, marketing manager at Family Investments, said more people than ever before are saving up for their child's education and first home.