People aged between 45 and 54 would need around six times their current savings to achieve a comfortable retirement living standard, Phoenix Group has found.

The average amount that mid-lifers report to have saved for retirement is £88,000. To achieve a ‘comfortable’ retirement living standard, a saving pot worth around £530,000 is needed.

Research by Phoenix Group found that ‘living comfortably’ (50%) and ‘being debt free’ (43%) are the top retirement saving goals for people currently in midlife.

As a result, over five million (59%) of this group are taking action to save more for retirement, including spending less on holidays and luxury items, looking for a second job and prioritising long-term over short-term saving.

Head of research and policy at Phoenix Insights, Patrick Thomson, said: "Half of people in midlife have an ambition to live comfortably in retirement despite only around one in ten current retirees having a retirement income that is deemed to be comfortable. However, taking positive steps to save more where possible can make a big difference to retirement income prospects.

"Midlifers are fast approaching retirement but are among the least financially prepared for this. As a generation they have typically missed out on final salary pensions and also the introduction of a lifetime of workplace pension saving through auto enrolment. Our research shows some are looking to save more where they can, from spending less on holidays and luxuries items to renting out a spare room. But a significant group is still at risk of sleepwalking into retirement without sufficient savings to fund it."

The PLSA ‘retirement living standards’ suggest a savings pot of around £530,000 in today’s money terms is needed for a comfortable retirement, on top of state pension income.

Thomson added: "Not everyone will be able to save more, especially amid current cost-of-living pressures, so it’s important there is an adequate financial safety net from the state to support people in retirement. There is currently a lot of speculation around the future of the state pension, both in terms of age of access and how much people will receive, but whatever changes might be down the road, we need to ensure the system helps the most financially vulnerable and prevents poverty in later life from worsening."

---