A study by insurer MetLife shows that a typical 50-year-old has saved £54,300 for retirement.
But to get to a yearly income above the poverty line of £14,400 including state pension payments, the average saver in this age bracket needs to squirrel away more than £122,800 by the time they retire, meaning they must save another £68,600, MetLife warns.
“They accept that they will have to retire later than anticipated, but are still uncertain about exactly how young they will be able to do so,” said UK managing director Dominic Grinstead. “Currently the average 50-year-old is a long way off the pension required to be financially comfortable after work.”
The 50-year-olds surveyed intend to retire at an average age of 61.5, having paid off their mortgages at the age of 58.5.
More than one in four of those surveyed plan to use the state pension as their main source of income in old age.