Just one in five of people who are approaching retirement age are saving enough to maintain their lifestyle, according to research by Aegon.
The study, which surveyed 946 people, found that just 17 per cent of those aged 55-64 had acquired over £300,000 in pension savings, the figure an average earner would need to maintain their lifestyle in retirement, while 38 per cent they are not confident about their ability to retire comfortably.
Furthermore, 13 per cent of people admitted they had no pension savings at all, while 36 per cent have never estimated their income needs in retirement.
Aegon pensions director, Steven Cameron, said: “These figures should set alarm bells ringing. Despite the introduction of auto-enrolment, there are still many individuals who are entirely unprepared for retirement.”
The research also found that 26 per cent of people with savings don’t know how much they have saved, and Cameron believes that people’s fear of saving less than they thought may be putting them off checking.
“However unsettling, the earlier you carry out a reality check, the more chance you have of doing something to get back on track. It’s worrying to see that many approaching retirement age don’t know how much they have saved for retirement and only one in five are on track to maintain their lifestyle,” Cameron added.