Generation 'not saving for retirement'

People who have yet to retire know they will live for longer than previous generations and understand that company pensions are likely to be less generous when they retire, according to HSBC.

But despite this, and the fact that many hope to switch to a part-time job in their 50s and stop work completely by the age of 62, only 39% of people have a financial plan to ensure they have the necessary retirement income.

The research found people who are planning for their retirement had saved an average of £123,000, more than double the UK average of £53,000, while those who were not planning had set aside just £28,000.

Nearly one in five people admit they do not know what their main source of income will be when they retire, while 21% say they will rely on the state pension, which only offers a meager return

Around 49% of people expect to be worse off in their old age than their parents, with just 27% expecting to have a higher income.

A further 68% of people admit they are worried they are not financially prepared for when they stop work.

Even among those who do have a financial plan in place, only 26% have taken professional financial advice on what they should do.

David Wells, head of investments, pensions and savings at HSBC, says: "Britons know that they need to plan and save more for their retirement, yet are not turning this knowledge into action."