Redressing the £27 billion UK savings gap and tackling the "scandal" of women's pensions were two of the priorities for the finance industry and the Government as they moved to avert a retirement crisis, a conference was told

The Association of British Insurers' conference in London was told that boosting the nation's savings habits and restoring faith in the industry were also essential to ensuring people enjoyed a financially secure old age.

work and Pensions Secretary Alan Johnson told delegates it was a disgrace that women received less money than men.

"I believe we need radical reform in order to tackle the scandal of women's pensions - where on average, today's single women pensioners have an income £24 a week lower than single male pensioners - with only 16 per cent of newly retiring women qualifying for a full basic state pension on the basis of their own contributions," he said.

But there was evidence that people were starting to understand the importance of saving for the future and the necessity of working longer in order to enjoy a comfortable retirement, he told delegates.

"The demographics are stark - two years from now, the number of people over state pension age will overtake the number of children.

"In just over 30 years, the proportion of the population aged 65 and over will increase by 50 per cent while the number of pensioners aged 80 and over will double."

Mr Johnson said the situation could not be ignored, and the industry, with the Government, was doing much to raise awareness of the problems.

"There is much further to go, but gradually our joint working in informed choice and financial education is making a difference," he added.

His sentiments were echoed by ABI chairman Richard Harvey, who said: "It is clear to me that we - the whole savings industry - have still further to go to win back confidence."