Three-quarters of workers are not on track to achieve a "moderate" income in retirement, according to a new report highlighting growing concerns over pension savings in the UK.
The report found that the income needed for a moderate retirement has increased over the past year, largely due to higher spending on food and social activities. While the rise broadly reflects inflation, housing costs are not included in the calculations.
Pensions UK said the retirement income standards should be used as a guide, noting that individuals may need to adjust the figures to reflect their own circumstances, particularly if housing expenses remain a significant cost in later life.
The trade body urged workers, employers and the government to do more to encourage retirement saving and increase pension contributions.
Pension providers issue annual statements estimating how much income savers can expect from their pension pots in retirement. However, concerns remain that many people are not putting aside enough money for later life.
Last year, the government revived the Turner Pension Commission, whose 2006 recommendations led to the introduction of automatic pension enrolment. Ministers and the commission's interim findings warned that future retirees could be around £800 a year, or 8%, worse off than current pensioners.
The report also highlighted a persistent gender pension gap. According to tax authority data, women have roughly half the pension savings of men. Research from investment platform AJ Bell found that women begin falling behind men in retirement saving from the age of 28.
