More than 19 out of every 20 people in the UK claim they do not envisage being able to cope in retirement if they only had access to the basic state pension.
According to new research from pensions provider Friends Provident, four per cent of workers and pensioners in the UK predict they would have a comfortable retirement using the basic state pension without any company pensions or stakeholder pension to fall back on.
Meanwhile, 32 per cent of current employees admit they expect to encounter financing difficulties when they retire as a result of not having put away enough money for the future.
Jeremy Ward, head of pensions marketing at the financial services provider, explained the message underlying the latest research project.
"While the recent modest state pension increase may see more going into people's pockets each year, our research has found that the vast majority of people need far more money than the state provides," he said.
Recently, chancellor Gordon Brown has become embroiled in controversy over a pensions decision taken in 1997.
By abolishing tax breaks for pensions, critics argue that Mr Brown has effectively reduced the size of the pensions pot for millions of retirees.
Basic state pension unliveable, survey indicates
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