Average pensioner will receive 90% less than required

The average retirement target is £334,102, based on the majority of the sample hoping for £12,000 per annum in retirement. However, the analysis revealed that planners throughout the UK only have an average pension pot of £33,000, which equates to a 90% deficit.

This figure equates to just £39.66 per week if planners were to retire now, compared to an weekly living cost of £199.752. Even if they were to receive the maximum state pension - £148.40 – pensioners would only have £188.06 to spend each week.

The data unearthed a significant contrast between what the UK pensioner hopes to receive in retirement, and the reality of what they will achieve.

Additionally, the research revealed that 71% of Britons admit to not understanding the pension changes announced in the budget, or the wider implications to their retirement fully. Avacade said that the figure reflects "a wider population of 'nearly retired' who are confused with regard to the most strategic method to plan their pensionable years."

They have since championed a call to action for the pensions industry to respond to an overwhelming need to facilitate further awareness and insight around the pension process.

Avacade's analysis also discovered that the average person only begins reviewing their pension aged 51. It also appears that those in relationships are more likely to plan their finances, with the majority (54%) being married when they review their pension. Only one in five (19%) are single, and even less (11%) are divorced when they review their pension opportunities.

Lee Lummis, Managing Director, Avacade Future Solutions, said:

“The pension reforms announced in the Budget are changing the marketplace considerably. We are delighted to say that we have evolved with them, and are excited about the new direction we are taking. Our research has supported this decision. Discovering that without reviewing the pension options available, many people in the UK would be left with so little in retirement - £39.66 a week – it is clear that our service to offer insight-led and IFA-backed consultancy is very much in demand. We believe the rest of the industry needs to recognise the number of people that are ill-prepared for retirement and ensure they are given the tools to secure their financial futures.”