More people are saving for their next holiday than for retirement and over a third are not saving for retirement at all according to a new report from Defaqto.
The Retirement Income and Savings report, published today, highlights the complacency that many people have about how they are going to fund their retirement.
It found 70 per cent of people said they would be relying on a state pension and showed people wanted more guarantees about how much their savings would earn and also more incentives to save in the first place.
A third of respondents think contributing to a pension should be compulsory and half as many again thought employers should have to provide pensions for their employees.
Defaqto pensions and wealth management principal consultant Matt Ward says: “Our research showed that many people are sleep-walking into retirement. While the majority are planning to retire from full time work at or around normal retirement age, many people realise that their income in retirement may not meet their needs.”
For this reason, he says, some 50 per cent of those currently working expect to either continue doing some work in retirement or to defer their retirement to make their savings last as long as possible.
He says: “Relying on part time work could be really dangerous, partly because the jobs might not be there when they are needed and partly because people may not be able or indeed, inclined, to work when it actually comes to it.”