BRITONS are unrealistic about how much they need to save for retirement and risk finding themselves battling with poverty in old age as a result, according to research out today.
The survey of independent financial advisers found almost half (48%) felt people had absolutely no idea what they needed in their pension pot.
Almost the same number (47%) believed Britons were over-optimistic about their financial futures and 40% said the nation was still far too reliant on state provision for retirement.
More than a quarter (27%) said people believed a retirement fund of up to £100,000 - providing an annual "salary" of only £7,171, some 29% below the minimum wage - was realistic to survive on.
According to the 300 advisers polled, the average amount clients believe is the "ideal" pension fund at retirement is £187,000 - which gives an annual pension income of £13,421, a figure 40% below the average national wage.
Financial experts Sesame found only 5% of respondents credited clients with being more realistic, seeing £250,000 to £500,000 (up to £35,909 a year) as the right amount.