Sixty-four per cent (8.9 million) of UK employees aged 45 and over do not know how much money they need to save for a comfortable retirement, research from Aviva UK has shown.

Its analysis also found that 5.1 million workers (37 per cent) do not know how much they have saved into their pension, while 62 per cent of those aged over 45 did not know what impact pension freedoms has on their retirement and 37 per cent did not know what type of pension scheme they were in.

Mid-life employees were also unsure about the state pension, with 43 per cent unaware of how much their will receive from the government in benefits, and a further 26 per cent said that they did not know what age they would be eligible for the state pension.

To help tackle the lack of understanding, 65 per cent of those surveyed believed that their employer to provide support for employees regarding their pensions.

Commenting on the findings, Aviva managing director of savings and retirement, Lindsey Rix, said: “Millions of mid-life employees are flying blind, and fast, towards their retirement. At the same time these employees are calling upon their employers for help.

“Without a clear picture of what they currently have saved or might need to save for a comfortable retirement, our findings show many UK employees are approaching retirement with their eyes closed – with no realistic idea of how near or far they are from their destination.

“As a first step, mid-life employees who are mystified by their pension savings should try to get a clear picture of what they have saved so far and how much of an income this can provide them with over the course of retirement.”

Based on a UK employee aged over 45 and earning a salary of £28,000, Aviva calculated that a worker would be able to build a pension pot of £56,000 by the age of 65, even with no previous savings, based on the a combined contribution rate of 8 per cent.

Rix added: "For some, this may be a pleasant surprise, while for others, it could be the wake-up call that’s needed to spur them to take action. People whose pensions are in need of a boost shouldn’t be disheartened, however, as it’s never too late to save.”

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