A 'pensions crunch' threatens to derail the UK economy unless the next Government deals with the demands of an ageing population, experts have warned.

 The company said whichever party wins the election should take action in its first 100 days in power to tackle issues such as the public sector pension deficit and the new system of “auto-enrolment”.

The company said there is a concern that employers and individuals do not know whether these rules are now “fixed in stone”, or whether a future Government will “shift the goalposts downwards”.

Additionally, Aegon said the Government must undertake a review of the automatic enrolment arrangements, which will see all employees signed up to their employers’ pension scheme or the new system of personal accounts from 2012.

Aegon said workers earning less than £10,000 should be exempted from the scheme and over-55s given the ability to opt out – to help them avoid being caught by the “means-testing trap”.

The life and pensions company also wants it made easier for employers to maintain existing schemes once the new rules are introduced.

"Tackling the 'Pension Crunch’ "

Aegon added that an independent commission needs to be set up to look into public sector pensions to reduce their unfunded liability. This black hole is estimated at £1 trillion by the CBI.

Otto Thoresen, Aegon’s UK chief executive, said: “Pensions policy is more important now than at any time before due to the pressures on the economy from an ageing population.

“Longevity isn’t a choice for the UK, it’s a certainty. And the question isn’t whether or when we start to pay for it, but how we start to do so now. Tackling the 'Pension Crunch’ shouldn’t be seen as an unwelcome cost challenge, rather it’s part of the solution to future fiscal and economic stability.”

Aegon said 81pc of people now think pensions are more important – or at least as important – in this election compared with the vote five years ago. It added that 59pc of people think the next Government should do all it can to maintain future generations’ retirement, even if it means extra short-term cost.

Mr Thoresen added: “Without action millions of people will continue to be condemned to poverty and state dependence in old age. That’s unacceptable. We need to... create the framework for a sustainable savings culture in the UK.”

Aegon, the Dutch life and pension company with 2m UK customers, said the next administration must scrap the “piecemeal approach” taken towards the retirement industry before it becomes an unsustainable burden for future generations.