The Financial Conduct Authority has warned that more than 15 million people in the UK still have no pension savings, despite the introduction of workplace pensions.
Its latest Financial Lives survey questioned 13,000 consumers revealing that 31 per cent of people had no private pension provision, leaving them to rely entirely on the state pension of up to £159.55 per week.
Worryingly, a large number of people aged over 50 revealed that they were not paying into a pension. Of those in this age group who said they had no private pension, 32 per cent said it was too late to set one up, 26 per cent said it was unaffordable and more than one in 10 said they were relying on their partner’s pension.
Despite auto-enrolment bringing millions into a private pension scheme, thousands of self-employed and part-time workers are not benefiting from a workplace pension due to the auto-enrolment rules, according to the study.
The figures also revealed a significant gap between men and women, with 33 per cent of men expecting to retire with just the state pension, rising to 53 per cent for women.
Looking at the types of pensions people would benefit from, the survey showed that only 16 per cent of working people have a final salary pension, while 41 per cent will have to rely upon a defined contribution (DC) pension.
Of those on DC pension schemes, around two-fifths have less than £5,000 of savings and only 12 per cent have more than £100,000, resulting in half of the people who have so far accessed their DC scheme saying it is not enough to live on.
Scarily, the report also notes widespread pension confusion, with just six in 10 adults aged 35-44 knowing how much their company was paying into their pension pot.