Millions of UK residents are unaware of how much they will need upon reaching retirement, according to research.
Around one fifth of the population believes that £50,000 would be an adequate pension sum, a survey conducted by Friends Provident indicates.
However, this amount would provide a pension income of £44.24 after tax on average, states the company.
The survey also shows that one third of UK residents have "no idea" what proportion of their income should be invested in a personal pension plan and 35 per cent don't know how much they could afford to invest.
Jeremy Ward, head of pensions marketing at Friends Provident says: "The continued lack of understanding of pensions is a serious issue and by ignoring this, the British people are facing a pension time bomb.
"This is a wake up call for consumers to start saving sooner rather than regretting it later."
Company pension plans and personal pension plans have been at the forefront of the media, following a recent government reform.
The Pensions White Paper recently put forward by the Labour government included plans to restore a link to earnings, which chancellor Gordon Brown had earlier described as "unaffordable".
Many Brits without adequate pensions, study shows
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Many Brits without adequate pensions, study shows
Mon, 12 Jun 2006
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