Poor levels of saving among British adults were uncovered in the study by TISA's Savings and Investment Policy project, including the 11% who only hide away money under the mattress or in a box.
Almost one fifth have been failing to save at all, researchers said.
Tony Stenning, chairman of TISA's Savings and Investment Policy project and head of UK retail at BlackRock, said: "If nothing changes we could be destined to benefit from longer, healthier lives, yet suffer financial hardship in old age.
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"It's important for us to remember that whilst many people know that they should be saving and investing, it is simply not an option for some as their priority is to live day-to-day."
The research showed that for many people the focus remained "making ends meet in the face of rising living costs", with 81% of people saying that their single biggest barrier to not saving regularly is that they have no disposable income. For women this percentage was even higher - 83%.
The most common financial priority over the next 12 months was to 'live day to day' (47%) ahead of 'saving for a holiday' (46%) and 'setting money aside for a rainy day' (43%).
With an additional £50 per month 'spare' to invest, almost a quarter of people (24%) would invest in a ISA, 21% would deposit this extra money in a bank account, 16% would pay down their mortgage or other debts and 15% would save towards a holiday. A quarter would start saving if offered an explicit, one-off lump sum of money.
On average, the amount which would spur people to start saving would be £87, with women needing a slightly lower financial incentive (£82) than men (£95).
Mr Stenning said: "It's important for us to remember that whilst many people know that they should be saving and investing, it is simply not an option for some as their priority is to live day-to-day.
"The generations impacted most are those aged 35 or younger as they face rising housing costs, less generous pensions and are saving less."
Of those who have been saving, almost a third were saving or investing £50 or less each month.
The majority (54%) were depositing this money in a bank or building society, 34% investing via ISAs, 12% into a pension and 3% through a company Save As You Earn Scheme.
For those who do not save, the single biggest factor in making them start to save or invest would be better rates of returns on savings (30%), followed by a lump sum incentive from the Government (24%) and free financial advice (12%).
The task force will publish recommendations early in 2015.     

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