Findings suggest that 24% of UK residents are dependent on a financial windfall to support their retirement. Of this number an alarming one in ten, or 3.6 million are basing their retirement plans on the hope of a lottery win, a study from LV= Pensions and Investments has found.
The average amount considered adequate came in at a little over £23,000 per year, with those in their 20s believing something closer to £26,000 would suffice. However with odds around 14 million to one for winning the National Lottery, and 76 million to one for the EuroMillions, many will find themselves drastically underfunded.
With so many people basing their retirement plans on chance, many Britons face an uncertain future with their retirement expectations being in stark contrast to the reality.
Of those asked, 7% said that they were dependant on inheritance for retirement income , with 5% hoping to see a rise in house prices, pinning their retirement plans on the sale of a property.
Surprisingly, those earning a higher income are twice as dependant on a financial windfall to fund their retirement. 37% of those who earn over £40,000 per year, are dependent on a payout to retire on. This may be in the form of a property sale rather than a change lottery win, but is still significantly higher than the 23% who earn less than £40,000.
With annuity rates at an overall low and the state pension unlikely to fund expectation for retirement, , the time for sensible future planning has rarely been more important. In an attempt to bolster pension saving in the UK the government is currently rolling out its auto-enrolment pension plan.
Ray Chinn, LV= Head of Pensions and Investments, said:
“It's shocking that such a high number of people are actually hoping for a lottery miracle to fund their life when they stop working.
"Despite over two-thirds of people (70%) expecting to have an underfunded or severely underfunded savings pot by the time they retire, or simply having no idea what they'll have, people are failing to put a plan in place. Although retirement planning can seem daunting, you can improve your financial prospects for retirement by taking matters into your own hands. Seeking professional financial advice about savings and funding retirement will have a huge impact on how comfortably people can live before and in retirement."