According to Aegon's Retirement Readiness Survey, published on Monday (May 20), individuals are relying on the government to provide 46 per cent of their total retirement income, alongside 30 percent from their own savings and 24 per cent from employer retirement benefits.
But this is expected to shift more towards personal savings in the future as government backed pensions become less generous.
In response, Aegon called for a new framework for retirement savings.
The report stated: "With the proportion of these sources of retirement income expected to increasingly shift towards personal savings, individuals need to be proactive in anticipating and developing their retirement plans.
"People need the help of employers and governments through the establishment of a more a supportive framework that can help them make sound decisions."
The provider suggested that employers should provide employees with more information regarding the ages at which workers are eligible to receive benefits under any workplace retirement savings plan, as well as how to access information on social security and other government retirement benefits.
They should also remind workers of this information as they come closer to retirement age.
Businesses should also provide workers with the flexibility to transition into retirement by offering part-time or reduced capacity work, said Aegon, as well as accommodating employees’ physical and mental limitations as they age, in the same way employers accommodate those with disabilities.
The provider also called on governments to offer better tax incentives on a global level to encourage individuals to save for retirement through workplace schemes as well as personal pensions.
Tax reliefs could also be introduced for long-term care to encourage people to save for the possible need for care in older age, said Aegon.
In the UK people are given tax reliefs on their pension savings and the majority of workers are now auto-enrolled into a pension. But the government is still struggling to solve the growing long-term care crisis the country is facing.
Aegon’s 80-page survey of 14,400 workers and 1,600 retired people across 15 countries spanning Europe, the Americas, Asia and Australia found that workers expect that they will need to replace 68 per cent of their current income in retirement, yet only 25 per cent feel they are on track to achieve that level of retirement income.
It also found that only 29 per cent of workers globally are extremely or very confident that they will be able to retire in a lifestyle they consider comfortable.
