Only around a fifth (22 per cent) of savers think their state and private pensions will provide enough to live off, according to new research.

Data from finder.com showed that half (50 per cent) of Brits thought they would need to supplement their retirement income, while 25 per cent were uncertain.

Almost a quarter (24 per cent) of respondents said they planned to use savings from bank accounts, premium bonds or ISAs to boost their income after retirement.

Just over one in five (21 per cent) believed they will need to remain in some form of employment to survive retirement.

The third most popular option was downsizing, with 12 per cent planning to free up funds by moving into a smaller property once they reached old age, while 6 per cent planned to accept money from family members when they retired.

By region, Londoners were the least optimistic about their pension savings, with 62 per cent assuming they will need to supplement their retirement income, while residents of the North West were the most positive, with just 42 per cent presuming the same.

The research highlights the inequality between generations, as just 28 per cent of those born between 1925-1945 have had to subsidise their pension.

Comparatively, merely 9 per cent of generation Z and 13 per cent of millennials thought they would be able to solely rely on their pension.

Men were more confident that they could live off their pension, with 48 per cent of male respondents stating they would need to supplement their retirement income, compared to 52 per cent of women.

Finder chief executive, John Ostler, said: “Having enough in your pension has long been a concern for many Brits, with cost of living outpacing salary growth over the past 10 years. Even still, it is a shock to see just a fifth of the population saying they will be able to live solely off their pension.

“The purpose of retirement is to eventually stop working, so it is also a worry to see 1 in 5 adults believing that they will need to continue some form of employment to pay the bills. We can expect to see this trend grow over time, along with needing money from children or relatives, which highlights how important it is to start saving early.”

Ostler added that coronavirus had only added to the problem by causing a “sizeable decline in most people’s investments”, though he added that this actually made it “a great time” to kick start investment for generations who are still saving.

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