Pension warning as you could be short of £250,000 for retirement | Personal Finance | Finance

Pension and retirement decisions can be major life milestones as people prepare to transition out of the workforce. However, the matter can often be complex, and could easily spiral out of control.

This is an issue which needs to be tackled imminently according to savings and retirement business Phoenix Group.

Their research, entitled A Guiding Hand, in partnership with cross party think-tank the Social Market Foundation (SMF),  observed a huge savings chasm amongst those aged 50 to 64.

On average, people approaching retirement age are almost £250,000 short of the pension pot they need to deliver the income they want in later life. 

In this age group, the typical individual has pension savings that are 58 percent short of what they actually require.

READ MORE: State pension sum may be affected if you have a workplace pension

However, the report asserted lack of awareness is an issue as only 47 percent of those in the 50-64 age group who were asked had heard of the service. 

The Social Market Foundation has therefore recommended an expansion of Pension Wise, in addition to new digital tools to assist access.

It has also called for using guidance or advice before accessing a pension to be made the default. 

Finally, the Government has been asked to create a nationwide pension awareness campaign to push the message that people need to prepare more amply for their retirement. 

A DWP spokesperson told Express.co.uk: “The Government is committed to ensuring people have the support and information they need to make informed choices about their financial futures and provides free and impartial guidance via Pension Wise and Money Helper. In addition, we’re making receiving guidance a normal part of the process when savers seek to access their defined contribution occupational pension. 

“Alongside the industry, we’re investing in simpler statements and pensions dashboards to help make it easier for people to access and make sense of their pensions information to support their retirement planning.”