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Nine out of 10 UK workers do not know what the basic state pension is, research by employee benefits provider B&CE Benefit Schemes has revealed.

Conducted among 816 individuals, the survey also showed that nearly one in eight - 12 per cent - believed the state pension would provide an adequate income by the time they reached retirement. And less than half - 49 per cent - of UK workers know that there are tax incentives for saving in a pension.

Further figures also revealed more than half of those surveyed - 63 per cent - had no idea what they will be entitled to when they retire. Pension awareness appeared to be at its lowest among the 16 to 24-year-old age group, with a massive 93 per cent not knowing what they will be entitled to at retirement with 48 per cent of those in the 55 to 64 age group remaining unaware of their entitlement.

Although the majority believe that the state will not be able to provide for them in their old age, more than half - 55 per cent - of all UK workers do not know what they should be putting away for their retirement.

In spite of this, 38 per cent believe free personal advice from a financial expert would help make pensions easier to understand.

Andrew Dixon, director for Warwickshire-based Aspect Financial Consultants, said it was not surprising as it was the people who most needed advice who did not seek it.

He said: "Pensions are such an important life decision yet some people remain unaware that the basic state pension is not enough to support them in old age."