Many are unsure of the total pension pot needed to achieve their desired retirement income.
Research by PensionBee, which surveyed 1,000 people, found 15 per cent thought less than £150,000 would be needed in retirement.
This suggests many savers may be underestimating the true cost of retirement and risking a pension shortfall, according to PensionBee.
Becky O’Connor, director of public affairs at PensionBee, said: “It’s hard to plan for retirement without an idea of how much you might need, yet most Brits seem to be unaware of, or worse, dangerously underestimate the true cost of retirement.
She suggested pensions calculators would be a helpful tool as the exact amount needed varies person to person.
Almost half (49 per cent) estimated they would need a total pot of around £250,000 or more, which would be necessary to sustain a basic retirement, longer than the 15 year average, the provider explained.
The data also showed there was a lack of clear consensus among respondents regarding their desired annual income in retirement with the top three responses clustering around an annual income of £15,000- £30,000, which included state pension and other benefits.
When asked if they were on track to achieve their desired retirement savings, 43 per cent said they did not feel on track with their retirement savings.
While 30 per cent felt unsure about their progress than confident they were on track (27 per cent).
alina.khan@ft.com
