The UK's 12-year retirement savings shortfall is the biggest out of 15 countries.
The average retirement savings gap for the UK is eight years, two thirds more than other countries.
The UK's 12-year retirement savings shortfall was the biggest chasm in the study, which covered 15 countries. The average retirement savings gap found across the research was two-thirds of that in the UK, at eight years.
People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged.
They are putting off the inevitable, which is the reality of significant cuts to their living standards in their twilight years, after their savings run out.
– Christine Foyster, head of wealth development at HSBC
Greater flexibility may be needed in pension saving, the head of investment propositions at Scottish Widows has said in response to a new study that shows that the next generation may have to start saving at 25 years old to retire by their 70s. Iain McGowan said:
Offering more flexibility that combines the accessibility of an Isa with the tax benefits of a pension could help future generations face up to the twin challenge of saving for short-term financial hurdles like a deposit for a mortgage or a wedding while at the same time setting aside enough for retirement.
– Iain McGowan, head of investment propositions at Scottish Widows
In the future, older workers - especially in the professional and business services sector - are likely to stay working longer into their 70s, but the nature of this work will become more flexible and probably more part-time.
Workers in manual or vocational careers are also likely to look to extend their working lives by undertaking a less strenuous, more part-time role.
The next generation face being in their 50s before they have paid off their student loans and in their 60s before they are mortgage free, research has shown today.
The Scottish Widows study argued that rising life expectancies, combined with people being saddled with large debts earlier in life, mean that today's children should start saving for their retirement at the age of 25 if they want to enjoy a comfortable old age.
Economist Steve Lucas argued that financial pressures from university and housing costs will mean that the next generation will only be able to afford smaller pension contributions, meaning they need to start saving from around 25 years old to prepare for 30 years of retirement.