Linking the state pension age to life expectancy will mean today's young people working longer than their parents, according to analysis from PwC.

Ed Wilson, director in PwC's pension team, said: 'The linkage to life expectancy is likely to mean someone starting work now will have to wait to age 72, and a child born today is unlikely to receive their state pension until they reach 77.'

PwC research also shows that the younger generation cannot expect anywhere near as much from their employer's workplace pension as their parents or grandparents. A new graduate being auto-enrolled on the minimum requirement is only likely to end up receiving a total of a third of their final salary as a pension, even after saving for their entire working life.

'Individuals face the increasingly stark challenge of making sure they have a sufficient amount put away for their retirement. Many are realising that they will need to work much longer than they had originally planned, but they are not necessarily recognising the amount they need to save for themselves in order to have a comfortable retirement,' Wilson said.

PwC is critical of government plans to review state pension age every five years, saying this layers on yet more complexity for workers wanting to plan for their retirement. However, Wilson said the opportunity for people to make additional National Insurance contribution to boost their state pensions effectively created ' an open defined benefit scheme that people can participate in' .