A recent survey has revealed that many Britons will fall short of the required amount of retirement income to lead a comfortable life in retirement.
It has been estimated that the average Briton will require an income of £409 a week during retirement to cover housing and day to day living costs. However, the average saved towards retirement will only provide an income of £312 a week, leaving a short fall of £96.69 a week, more than £5,000 over a year.
The pension company, Friends Life surveyed 18,000 to establish how much money they were saving for retirement via pension plans, savings, property and other investments.
58% of people surveyed were saving into a pension fund of some type, and 23% of these were saving the maximum amount they could afford.
However, most people questioned were facing a large shortfall in the amount they would receive as retirement income and the amount they would need to live comfortably, with many failing to prepare adequately for the years ahead and underestimating both how much they money they will need and how long their retirement income will have to last.
The amount people save towards retirement seems to depend upon the area of the country they live in, with some faring much better than others.
Of those questioned who live in the East Midlands, East of England and the South West, more than half admitted to not saving any money towards their retirement.
The Friends Life study found that those living in Scotland, the South East and West Midlands were the best retirement savers, with the highest amounts of people saying they saved as much as they possibly could towards retirement.
Those living in the Capital and the East of England were saving the least amount of money towards retirement, and the average Londoner can expect to have a retirement income shortfall of more than £120 a week. Although, this is not surprising as London has the highest overall living costs at an average of £228 a week and many striving to get onto the property ladder rather than save for the future.
Even people who were realistic about how much money they would need in retirement such as those in the North East and South West would still be around £85 short each week.