A lack of savings could see the average 30 year-old forced to continue working until they are 74, new research from Prudential has revealed.
The savings and investment provider found that a 30 year-old earning no more than the national average could have to postpone their retirement unless they dramatically increase their current savings levels.
A 20 year-old in a similar situation could face work until they are 72, Prudential found.
Additional monthly savings of around £340 are needed for the average thirtysomething to achieve a target pension of two-thirds of their annual pre-retirement income.
"Our research provides a retirement income reality check," commented Debbie Falvey, head of retirement planning at Prudential.
"For the younger generation, as these figures show, stopping work at this age is increasingly likely to become a luxury unless they start saving more now. The reality for many is that financially, they will feel forced to continue working into their 70s to make ends meet."
Prudential believes that if people start to manage their retirement planning now, they may be able to dramatically shorten their working life. Click here to find out more about planning for your retirement.
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