AXA Wealth’s latest Big Money Index has revealed two-thirds of people (63%) say the government will not provide the majority of their retirement income.

Many people are becoming increasingly aware of the need to begin planning for retirement earlier and the state pension will not be enough to fund retirement.

The research highlights with consumers facing an average pension shortfall of more than £4,600 per year and unable to rely on the state pension, 40% of people have turned their attention to other methods.

AXA Wealth specialist products, managing director Nick Elphick said: “Some investors could consider consolidating wealth from a variety of assets to ensure they are making the most of all available tax allowances, while others could begin pooling assets with an investment partner in a family SIPP to take advantage of the ever changing tax landscape.”

Meanwhile found two-fifths (41%) of young professionals and over two-thirds (36%) of those aged 45-54 will be postponing their retirement with plans to work longer and relying on their salary.

Elphick warned: “Those in their 40s and 50s need to put some serious thought into their own personal circumstances and the big decisions they will have to make unless they begin to plan for their long term future – a reality check that an adviser can really work through with them.

“For some people there may be too little time to increase their retirement savings, but for those generations that follow, young professionals currently in their 20s and 30s, these findings highlight the importance of starting to save early and implementing a thorough long-term financial plan in preparation for retirement.”