Young people face the prospect of losing 48 per cent of their income to the tax man, a new study has shown.

A study from think-tank Reform found that between the ages of 20 and 35, today's students will have to pay out large amounts in student debt repayment and auto-enrolled pension schemes, leaving them with only 52 per cent of their salary.

The group has been dubbed the "iPod generation" standing for Insecure, Pressurised, Over-taxed and Debt-ridden and face difficulties from rising debt, low earnings growth, low savings and difficulties entering the housing market, according to the report.

Older people over the age of 47, however, will be able to enjoy retirement at the age of 65, plus a higher state pension, without having to pay for it.

Young people are in danger of drowning under a sea of rising government taxes and more new compulsory payments.

They need some kind of lifeline, in the form of a longer term commitments to public spending discipline and fairer tax reductions.&

Undergraduates staring university this year are expected to leave with average debts of £15,000, which is more than three times the debt level in 2000.

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