Britons are being reminded to review their retirement savings in mark of Pension Awareness Day as millions at risk of falling into poverty in old age.
New research from Scottish Widows has revaled more than half of UK adults have done little or nothing to investigate how much they need to save for later life.
The insurance provider’s latest Retirement Report exposes widespread unpreparedness among the general British population.
Nearly one in four Britons are saving nothing for retirement, while more than a third admit their savings fall far short of what will be required.
Nearly one in four Britons are saving nothing for retirement.
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Specifically, the survey points to a knowledge crisis with quarter of people lack confidence in managing pensions because they do not understand how schemes work.
More than one in four have given no thought to what lifestyle they want in retirement. One in five are unsure how they will fund their later years.
Based on these figures, retirement analysts suggest millions could face financial hardship when they stop working.
Robert Cochran, a retirement expert at Scottish Widows, said: "Retirement planning is much more than simply putting money away for the future.
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"Tracing old pensions, setting up additional investments to support retirement funds, and thinking about how and where you want to spend your twilight years are all important aspects that can't be overlooked."
He warned poor planning leaves people at risk of joining the estimated 15.3 million who could face poverty in retirement.
The warning comes as new figures expose hardship among those already retired.
Data from the Living Wage Foundation shows 54 per cent of low-income pensioners struggle to keep up with bills and credit commitments.
It's between the 15th and 17th September
|Pension Awareness Day
The foundation previously warned hundreds of thousands of elderly Britons face widespread distress as they battle the rising cost of living.
Around one-third rely on benefits, partners or relatives to get by. Nearly 30 per cent carry debt, while one in five are eating into savings to cover everyday costs.
The report also highlights severe deprivation with 14 per cent sharing they endured serious hardship in the past year, such as missed bill payments, payday loan use, unheated homes or regularly skipping meals.
As well as this, the financial pressure is damaging mental health with one in four retirees suffer disrupted sleep, while 26 per cent report heightened anxiety caused by money worries.
Some 20 cent cannot afford an unexpected £200 expense, leaving them vulnerable to sudden shocks like boiler breakdowns or appliance failures.
Among renters, 24 per cent said they have missed rent payments, gone without heating or relied on payday loans.
Debt affects 43 per cent of pensioner tenants compared with 23 per cent of homeowners.
Living alone also increases the strain with 40 per cent of single pensioners are in debt, compared with 25 per cent of couples.
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One in four retirees suffer disrupted sleep.
| GETTYOver one-third of those living alone cannot afford a £200 emergency expense, more than double the rate among partnered retirees.
Mr Cochran said Pension Awareness Day is an opportunity for people to take stock.
He added: "Our research paints a stark picture of how unprepared people in the UK are for retirement, with many admitting to not doing enough to support themselves later in life."