According to Aegon’s third UK Readiness Report, the latest in a series of studies that looks at attitudes towards retirement, a staggering 93% of people’s savings fall short of what they will need to survive in retirement.

In fact, the nation’s ‘readiness’ score has fallen over the last 12 months from 52 out of 100 to 47. Anyone with a score of 70 or more is said to be on track for retirement.

The fall is due to people’s expectations about the amount of money they hope to retire on each year rising from £35,000 to £42,000, despite the fact that this would require a saving pot of more than £1m, a sum higher than the new pension lifetime allowance (amount savers can put into a pension over their lifetime), which is set to fall from £1.25m to £1m in April 2016.

The lack of preparation follows large scale change in the pensions industry. More than five million people have now been auto-enrolled into a pension scheme by their employer.

However, 41% of employees don’t know how much of their salary they’re contributing to their pension pot, and 59% say they have no idea how much their employer is contributing.

On top of this, half of the UK’s workers have no idea how much they have saved into their company pension so far. 35% of those in employment don’t even know whether they’re eligible to be auto-enrolled into a company pension.

Half of all respondents have never done anything to review their retirement plans, and 55% have never checked the performance of their retirement savings. It is therefore perhaps no surprise that less than two in five (38%) feel confident about being able to retire at their target retirement age.

There is however positive sentiment about the idea of having a workplace pension and the desire to save for the future. 79% plan to rely on their workplace pension as their main source of post-retirement income, and just 6% said they’d leave the auto-enrolment scheme when the minimum contributions rise to 5% in 2018. In fact one fifth said they would go so far as to increase the amount they saved beyond the minimum requirement.

David Beattie, managing director of Aegon UK Direct, said: “It is deeply worrying that as a nation we’re still failing to prepare for our futures, despite the big changes made to pensions in recent years. We have a new government, and with this, the opportunity to ensure the pension reform of the last parliament is implemented successfully. The focus has been primarily on giving those approaching retirement more control of their savings, something that we wholeheartedly support. But it is time for a shift in emphasis from both government and industry. We must now focus on the savers, and do more to help them save for the retirement they want.

“There’s a huge disconnect between the amount people have saved and the retirement income they want in retirement. Most people want an income which would require more than £1m of savings. How close are they to that? With the lifetime allowance due to fall to £1m, unless individuals also have substantial non-pension savings or defined benefit pensions, £42,000 isn’t just unrealistic – it’s more than the Government will allow.”