Friends Provident has announced the results of a survey suggesting that one in five Britons believe they can survive through retirement on the equivalent of under £45 a week.
The poll, conducted for Friends Provident by trend forecasters The Future Laboratory, showed that 20 per cent of those questioned believed a £50,000 lump-sum would be enough to fund a decent pension-drawing lifestyle.
Despite currently being able to rely on a state pension of £84.25 a week, on top of any private investment income, a £50,000 pension pot would still provide a weekly income of less than £130 a week, a total that is under the minimum wage.
"The continued lack of understanding of pensions is a serious issue and by ignoring this, the British people are facing a pension time bomb," said Jeremy Ward, head of pensions marketing at Friends Provident.
"Despite the importance of saving for retirement having a high media profile in recent months, the message still isn't getting through and consumers are still confused about when they should start saving and how much they should put away each month."
"This is a wake up call for consumers to start saving sooner rather than regretting it later," Mr Ward concluded.To read more about pensions, click here.
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