The days when retiring meant years of pottering around the garden or spending lazy days on the golf course could be a thing of the past for millions if they fail to take action and put money to one side for their future, experts have warned.

Just recently, the 2008 'Cost of Retirement Index' from Life Trust Insurance revealed that the cost of giving up work for good continues to rise, particularly now that rising life expectancy levels are combining with an ongoing squeeze on personal finances.

According to research carried out by the firm, retirement in the UK now costs a typical household some £413,000, with those living on their own once they finish work needing to have more than £325,000 to have a comfortable life.

What's more, as medical advances push life expectancy rates ever upwards, the amount people need to set aside for the future keeps on growing, with someone living to the age of 100 likely to need the best part of £700,000 in their pension pot on order to avoid poverty in their old age.

Despite this, however, many people are still refusing to invest into a company pension scheme, with some feeling that the equity on their home or the money squirreled away in a savings account will be sufficient to fund their golden years.

The National Association of Pensions Funds (NAPF), the leading UK body representing those who look after the finances of tomorrow, has argued that such an attitude is as risky as it is baffling.

Though the mortgage market may have been the subject of some negative reports recently, with some funds posting multi-billion pound deficits, this should not deter people from saving money in a private pension scheme, particularly as state pension rates look unlikely to keep up with the growing cost of living.

Michelle Lewis, senior policy adviser at the NAPF, advised: "Saving into a company pension scheme remains vital if people want to enjoy a good standard of living when they retire.

"It can never be emphasised enough that members of company schemes enjoy tax relief on their contributions as well as the benefit of any employer contribution."

Of course, as bills rise, many households may struggle to find enough money to save for the future, and pensions can often fall down the list of budgeting priorities.

However, the importance of saving for the future cannot be understated. Put simply, making sacrifices today can prevent years of misery in the future.