Seven in 10 young pension savers risk heading for a cash shortfall in their retirement, a report warns.
People aged 22 to 29 years old typically expect to need an annual income of just over £23,000 for a comfortable retirement, a survey from Scottish Widows found.
But based on the amounts people in this age group said they were saving, the insurer calculated they could face an average shortfall of around £8,000 per year, as they could typically expect to end up with a yearly income of £15,200.
Scottish Widows found that 70% of people surveyed in this age group were not saving enough for their retirement.
It suggests that people should be putting away 12% of their income, including any employer contributions, to be saving adequately.
More than a third (37%) of those aged 22 to 29 years old said student loans were eating into their monthly pay cheques, while 21% had unpaid credit card bills.
Scottish Widows suggested that pensions should reflect the digital age to encourage younger savers.
Its report said: "To do this the industry must make significant investment in digital innovation - we need to reflect the way young people engage and do it quickly or we risk turning off a whole generation to long-term savings."
Catherine Stewart, a retirement expert at Scottish Widows, said: "While retirement may feel like a long time away for those in their 20s, it's really important they start to think about it as soon as possible.
"Using the right platforms, technology and content to engage young people in formats they appreciate is a critical first step. If we don't get this right then it is far more difficult for them to reach their desired savings levels in their 30s and 40s."
More than 5,300 people were surveyed for the report.
A Department for Work and Pensions (DWP) spokesman said: "Young people have competing demands when it comes to saving their money, but the truth is they are embracing pension saving.
"Almost seven in 10 eligible 22 to 29-year-olds working in the private sector are now enrolled in a workplace pension and as contributions increase, young people will be able to save even more towards their retirement."