Details of a new pension scheme, which will give all employees the right to a pension contribution from their employer, have been announced.
The changes come in response to the pensions crisis and the fact that many elderly people are living on the poverty line.
A survey by the department for work and pensions found that a third of people had never contributed to a pension due to a lack of information about the importance of saving for retirement.
John Hutton, secretary of state for work and pensions, said: "The new pensions saving scheme we are setting out today will be a major step forward for employees across Britain and can kick-start a new culture of retirement savings."
Anna Pearson, policy manager of Help the Aged, described the proposals as "a good first step", but called for more to be done to prevent pensioner poverty.
She said: "Currently one in five pensioners live in poverty and more than one in ten older people live in severe poverty.
"All government proposals must work toward ensuring past failings of the pension system aren't repeated so older people both now and in the future will benefit."