‘Retirement reality’ hits home at 48

Britons will not understand just how much money they need to be able to retire comfortably until they are 48. 

NFU Mutual has surveyed over 2,000 adults in order to find out how prepared they are for post-work life and whether or not they are worried about their situation. 

According to the research, people's 'retirement reality' only hits home as they approach their 50s, by which time it could be too late to assemble a decent-sized pot. Indeed, 25 per cent around this age have no retirement savings whatsoever. 

In terms of younger people, 64 per cent of those aged between 18 and 24 have no pension or savings and this widespread lack of investment could cause serious problems further down the line.

Steve Meredith, pension and retirement specialist at NFU Mutual, said: "People might read these findings and worry – or worse still, bury their head in the sand about their own retirement planning.

"Whether you're 18, 48 or 68, it's absolutely never too early or too late to start making plans for later life. Any provision, no matter when made, will give you a better range of choices, [so] it's vital that people take action and start putting something aside now."

Mr Meredith added the sooner people start saving, the sooner they will be able to retire without worrying about their financial situation. If consumers have to rely on their state pensions – the maximum a person can get is £110.15 per week – they will have to make significant cutbacks on their lifestyle. 

The lack of action is leading some to push back their retirement plans, typically by four years, as they realise the need to be realistic about how much money they have to set aside. One in ten over 55s even admit they do not think they will ever be able to give up work. 

By Joe White