Prudential says one in seven adults retiring this year have no pension fund

The insurance firm, which employs more than 2,000 workers at its site near Stirling, also found some 14 per cent of those planning to retire in 2017 have made no such provision for their retirement, according to Prudential.

While there is some good news for women, with the numbers retiring without a pension falling to 19 per cent this year from 22 per cent last, that is still more than double the 9 per cent of retiring men.

The survey of some 1,000 people who expect to retire in 2017 revealed that the male proportion embarking on retirement with just the state pension in 2017 was slightly higher the figure of 7 per cent recorded last year.

Pensioners relying solely on the State Pension worth nearly £8,3000 a year will be more than £1,400 worse off than the minimum income standard set by the Joseph Rowntree Foundation.

On average, people expecting to retire this year estimate that the State Pension will account for more than a third (35 per cent) of their income in retirement.

Those members of the Class of 2017 who have a pension of their own include: 42 per cent who have the majority of their pension savings in a workplace final salary scheme; one in eight (13 per cent) who’ve saved in a workplace defined contribution scheme; and 13 per cent who have savings in a personal pension not through their employer.

More than two-fifths (42 per cent) of those retiring this year who have their own pension hold the majority of their savings in a workplace final salary pension scheme. These schemes are often described as “gold plated” as they promise savers a certain level of income when they retire – but they are becoming increasingly rare as companies find them expensive to run.

Stan Russell, a retirement income expert at Prudential, said: “People throughout their working lives should be doing everything they can to ensure that they are entitled to the full amount of state pension, including making voluntary National Insurance contributions to cover any missing years.

“However, for many working people the state pension will always be viewed as just one aspect of retirement planning. It is therefore concerning that some pensioners who are due to retire this year will rely solely on the state pension and will face retirement incomes of £1,400 below the Joseph Rowntree Foundation’s minimum level required to live comfortably.”