One in six have failed to save for retirement

According to a new report 16% of those set to retire in 2012 plan to rely entirely on their state pension provision to provide an income in retirement.

One in five (20%) women, and 8% of men retiring this year do not have any money saved into a pension fund, and more than a quarter of retirees do not know how much they can expect in state pension payouts according to the poll conducted by Prudential.

Vince Hughes-Smith from Prudential said:

"While the State Pension is a safety net for pensioners in the UK , it should only ever be regarded as part of an overall retirement plan."

"Although State Pension levels will rise to £107.45 for single people per week on Friday, this will still only provide relatively low levels of income to people in retirement."

On average those planning to retire in 2012 will be relying on the state pension to provide as much as 34% of their retirement income, with the majority of the remainder expected to come from a mixture of company pensions, and other savings and investments.

Smith-Hughes said:

"For far too many people, the state pension has become the default income option in retirement. Even those who have some private provision depend so heavily on the state that it makes up a third of their retirement income."

"If people want to maintain their standard of living in retirement it is important that they start to save as much as possible as early as possible, and the vast majority should join company pension schemes where possible.

"Seeking early advice from a financial adviser should also be a prerequisite to helping people achieve the level of retirement income they want and need."