Seven in 10 younger workers are not saving enough for their pensions, experts have warned
Those aged under 30 typically expect an annual income of just over £23,000 for a comfortable retirement, a survey of 5,300 people found.
But based on the amounts people in this age group said they were saving, the insurer calculated they could face an average shortfall of around £8,000 per year, as they could typically expect to end up with a yearly income of £15,200.
A 30-year-old contributing the current minimum of one per cent to their workplace pension which is matched by their employer will achieve an income in retirement of £9,734.
Even when the minimum contributions rise to eight per cent combined in 2019, they will only achieve an annual retirement income of £14,047.
This is a shortfall of almost £9,000 on expectations.
Workers under 30 expect an annual income of just over £23,000 for a comfortable retirement
Retirement is looking more expensive than ever.
The 13th annual Scottish Widows Retirement Report reveals that, despite the success of auto-enrolment with 80 per cent of 22-29 year olds paying something into a pension, 70 per cent of them are not putting away enough and should be saving 12 per cent of their salaries, including any employer contributions.
However, more than a third said they were struggling with student loans repayments eating into their monthly pay cheques, while 21 per cent had unpaid credit card bills.
Catherine Stewart, of Scottish Widows, suggested that pensions should reflect the digital age to encourage younger savers.
Under 30s could face an average shortfall of around £8,000 per year depending on their savings
She said: “To do this the industry must make significant investment in digital innovation – we need to reflect the way young people engage and do it quickly or we risk turning…