As the Budget pension freedom nears, research reveals the average retiree will receive 90 per cent less than what they desire to live on.
Analysis of 10,000 active pension planners by Warrington-based pensions consultancy, Avacade Future Solutions, found that the average fund size is just £33,000.
If they were to retire now, pensioners would be left with a disposable income of £39.66 per week, yet the average living cost for a pensioner is £199.75 per week.
Even if they were to receive the maximum state pension of £148.40, tomorrow’s retirees will only have £188.06 to spend each week.
This is a significant contrast to what the UK pensioner hopes to receive in retirement, with the majority of the sample hoping for £12,000 per annum in retirement.
The average target fund size required for the sample to attain their retirement desires is £334,102.
The discrepancy between desire and reality reveals a misinformed and subsequently unprepared pension planner, particularly when many are due to gain full access to his or her pension fund in less than six months.
The Budget reforms announced for April will see - for the first time in UK pension history - the critical mass of pensioners handed significant financial freedom and control of the largest sum of personal finance many will ever need to manage.