Economists at the World Economic Forum (WEF) have issued a warning to British pension holders that they could run out of money a decade before they die.
The latest report from the WEF suggests that many people will have to work for at least 10 more years to increase the amount they save and live comfortably in retirement.
It predicts that retirees would need enough income to cover 70 per cent of their pre-retirement pay, but found that most retirees or those approaching retirement do not have enough in their pots.
Han Yik, co-author of the report, is calling on the Government, businesses and savers to take action, with the Government, in particular, needing to do more to help savers allocate their pensions and investments more efficiently.
The WEF believes that if something is not done to rectify the pension gap, many people may need to postpone their retirement and continue working.
The report also called on employers to do more to make sure workers are covered by workplace pension schemes.
It is thought that the UK is ahead of many countries in this area thanks to the workplace pension scheme, but the relatively small minimum contribution of eight per cent may not be enough to sustain people who are living longer.
Steve Horton, Financial Services Partner at Milsted Langdon Financial Services, said: “With people living longer, healthier lives there has never been a greater need to save more for retirement.
“Those looking to retire on the UK average wage of around £28,000 need to save a substantial amount if they are to maintain the same standard of life after work.
“Even those on a higher wage will have to put away a considerable amount if they want to reach the WEF’s predicted target of 70 per cent of their pre-retirement pay.
“If you are struggling to save or would like to know more about what pension options are available to you, why not speak to one of our advisers?”