Retirees will need over £600k pension for comfortable retirement

In order to achieve an annuity paying out £25,783.87 after tax, a non-smoking male looking to take his annuity from age 65, would need to have a retirement fund of £616,400  - a fund they need to create during their working life on top of their personal outgoings and other expenditure such as property, costs of raising children and regular bills. This example does not take into account any additional income they would receive through state pension.

The study has also shown that only 27 per cent of over-55s have already achieved a level of savings that they are confident will comfortably fund their retirement. Seven per cent were actively considering delaying their retirement due to perceived lack of funds.

Kate Turner, head of wealth advice, Towry, said:

"Many of those who think they are on track with their savings and retirement planning may be well advised to commit more of their finances to their pension pot if they want to maintain their current lifestyle in retirement.

"The sheer scale of how much you need to save in order to provide the standard of living you would like in retirement may well shock many people, especially in the current low interest rate environment.

"It is especially critical for those who are over 55, and hoping to look towards accessing their pension fund in the coming years, to be in a position where they can feel comfortable heading into what is hopefully going to be a long retirement period."