People aged 50 to 64 are heading for retirement with a pension pot 58% short of what they need, a report has warned.
On average their pensions are £250,000 below what is required for a comfortable retirement, adding up to a total shortfall of £132billion.
Think-tank the Social Market Foundation found more than two-thirds of 50 to 64-year-olds did not know how much they needed for retirement.
Only a fifth of them had spoken to a financial adviser about their pension.
The research, sponsored by retirement and savings business Phoenix Group, found a failure to plan properly risked leaving people confused, anxious and at risk of missing out on a better quality of life in retirement.
The Social Market Foundation has called for the Government-backed Pension Wise guidance service to be expanded, with new digital tools.
Scott Corfe, SMF research director, said: “There is a serious gap in the provision of advice and guidance around pensions.
“That gap leads to real financial harm. Lacking an accurate understanding of what they will need means some people will not save enough, and end up disappointed.”
