Nationwide Building Society responds to Scottish Widows' latest annual Pensions Report:

Guy Simmonds, Nationwide's head of product for protection & investment, comments: "There is a danger that we are storing up a retirement time bomb with a massive gulf between the haves - who have been prudent and saved each month - and the have nots. We will see more and more over 65s who need to continue to work in order to survive and pay their bills.

"The baby boomer generation who had to contend with post war rationing and austerity can teach us all a few lessons in how to save, mend and make do. This is likely to be the last generation to retire with a decent savings pot behind them."