Meanwhile, the research from insurance giants Aviva reveals that almost 3.4 million 32-40 year olds who are paying into defined contribution pension schemes could expect to accumulate £225,000 or more by the time they retire in 2050. However, even though this may seem like a significant sum, it is unlikely to provide a ‘moderate retirement income’ according to Retirement Living Standards.

In addition, more than half  of the group also said that they no idea when it comes to planning for retirement. And nly on in ten of those on middle incomes has taken advice on planning for their financial future for when they retire.

More Government and industry support needed

Aviva has called for the Government and the wider pension industry to work together to support those who are due to retire in the 2050s.

It has published a new report Planning for retirement in the 2050s, working alongside consultants WPI Economics.

The report explores the challenges that those who are 32-40 years old face when managing their retirement planning.

Pension holders knowledge and understanding of how much they need to save to retire is one of the main focuses of the report.

Aviva found that a typical middle earner who contributes 8% of their income into a pension fund can expect to build up £225,000 or more in the 2050s.

The survey also found that just one in five said that they were prepared in how they will fund retirement.

Aviva has set out a list of key actions for the Government and the pension industry to help future retirees.

It includes transforming professional support and setting a clear vision in expanding auto-enrolment over the next decade.

‘The majority say they have no idea where to begin’

Doug Brown, CEO of UK & Ireland Life at Aviva said: “The pension landscape has changed significantly over the past decade, but the introduction of important initiatives like automatic enrolment in 2012 and pension freedoms in 2015 have not yet been matched by the wider support needed to help people make the most of the opportunities available to them.”

“This needs to change and change quickly if we are to help future retirees.”

“Almost 3.4 million people are expected to retire in the 2050s with accumulated pension pots of more than £225,000. The vast majority of these will need financial advice, and everyone will need robust, well-designed professional support in their decision-making and planning, but the majority say they have no idea where to begin.

“Despite this, there is no clear vision of the support people need, and consequently policy is piecemeal and insufficient – leaving savers at risk from poor decisions.

“Government, regulators, and industry need to work together to develop a blueprint of the support that pension savers need and take steps to put that support in place, so future retirees are able to make better decisions and achieve more positive retirement outcomes.”