The average target pension pot set by UK retirees would only last 11 years in retirement, according to new research from Retirement Review.
Based on survey responses, the average personal pension savings goal is £253,701.40, intended to fund an annual retirement income of £30,050.20.
However, this would only sustain retirees for just over a decade, raising concerns about long-term financial security in later life. The average age at which respondents expect to retire is 65.7.
Worryingly, a third of consumers remain unsure about both the size of their current pension pot and how much they need to save for retirement.
Only 6% expect to retire before age 60, while 19% are uncertain whether they will ever retire at all.
The report highlights the “huge potential value of advice”, with the number of people expecting to retire before 65 rising from 21% to 28% among those who have received financial planning.
When it comes to sources of retirement advice, financial advisers were the most trusted professional group.
Some 69% of respondents expressed trust in advisers, compared to just 19% who reported mistrust. Among those who regularly engage with their adviser, trust rose to 88%, while mistrust dropped to 11%.
Pension providers were also viewed favourably, with 68% of respondents saying they trust them and 20% expressing mistrust.
Family members, however, topped the trust rankings overall, with 70% saying they would turn to relatives for retirement guidance.
The government ranked lowest, with only 43% expressing trust — and the highest level of distrust at 47%.
The study also revealed widespread confusion around annuities. While sentiment towards annuities was broadly positive (37%), only 10% of consumers claimed to know a lot about them and 20% had never heard of them.
A further 32% had a negative view, while 31% were unsure.
On the future of the State Pension’s Triple Lock, 62% said they wanted it retained for now, but 18% would support scrapping it within the next decade.
Despite the growing number of individuals with multiple pension pots, only 36% said they were likely to consolidate their savings.
Paul Yates, product strategy director at iPipeline, commented: “This research shines a very bright light on the inadequacies of the UK retirement planning system. Unclear, confused and unprepared. People need help to ensure they can plan for and deliver a minimum — let alone moderate or comfortable — standard of living in retirement.”
Helena Wardle, founder of Money Means, added: “People do not engage with pensions. They find them confusing, the terminology is awful and they don’t know what they should be doing or how. It shouldn’t be this hard for people to get a clear picture of where they stand or the levers they can use to improve their outcomes.”
She continued: “The intent behind educating people is good, but it won’t help on its own. People need low-effort, action-focused solutions that make it easier to make decisions sooner. If we want people to be better off, we must simplify the system — for their benefit and the industry’s.”
The Retirement Review surveyed 3,000 UK consumers, exploring attitudes and knowledge across a range of pension and retirement issues.
