Savers must have flexibility in the future pensions landscape to combat key challenges, Pensions Policy Institute (PPI) research has said.
In the second installment of The Future Life; the implications of a longer life, the PPI said that challenges such as increased life expectancy means the industry must reflect a "multi-stage life as opposed to a traditional three-stage life".
The research, conducted in association with LV, State Street Global Advisors and The People's Pension, suggests that it is time to "rethink policy issues" around the role of the state, employers and individuals in "facilitating consumers funding a longer life".
In order to address the future issues, the research body highlighted the need for better access to financial support, a "continuation with the digital inclusion agenda", the enabling of technology and financial safety nets.
PPI deputy director, Sarah Luheshi, said: "As highlighted in our first report, there needs to be a mind-set shift towards a more multi-stage life, with breaks and overlaps between the stages.
A survey by YouGov, found that 34 per cent of 18-39 year olds want to have one job for the majority of their working life, while 46 per cent said they do not have enough savings and 59 per cent wanted their own home in the next 10 years.
"The risk of being financially vulnerable in the short term can be a barrier to long-term and pension saving. Different stakeholders working together could enable consumers to shift their thinking by enabling the integration of short, medium and long-term financial products and planning together," Luheshi added.