Aegon says millions of adults have a rose-tinted view of their financial future, with nearly one-fifth claiming not to have any long-term savings or a pension.
In a survey carried out by Aegon of 1,268 people, just over 70 per cent expect to need between £10,000 and £25,000 a year to have a comfortable lifestyle in retirement while 22 per cent think they would need more than £25,000 a year.
Yet 19 per cent do not have any savings and 42 per cent of people do not think they are saving enough to provide the lifestyle they want in retirement.
Inflation is seen as the biggest threat to long-term savings and investments by 24 per cent while 20 per cent say a collapse in house prices is their biggest concern.
Director of individual pensions Malcolm Flanders says: “Many people are still expecting to retire before 65 and lead a comfortable lifestyle. The fact is that a large swathe of the UK population risks being financially impoverished in retirement. Our survey suggests that many people are still expecting to rely solely on state benefits or are gambling on the pros-pect of their children taking care of them.”