UK faces 'pension perfect storm' - Video
The UK is sailing into a pensions "perfect storm", as the recession leads people to ignore long-term savings.
The warning, issued by HSBC Insurance, comes as people's short-term survival strategies facing recession are creating serious long-term pensions problems.
A report finds people while people are more concerned with protecting their pets and possessions in the short-term than ensuring they can look forward to a secure life after work.
The problem of "continuing lack of pensions planning" and poor levels of financial understanding were also highlighted.
The result is many people will struggle to make ends meet when they come to retire, unless they urgently review their priorities and planning.
Stephen Green, group chairman of HSBC, said: "A perfect storm is confronting pensions planning, created by an ageing population, falling pension funds values, a drop in state and employer contributions and an economic downturn which is forcing people to make tough financial choices."
The report - entitled It's Time to Prepare - followed surveys of 15,000 in 15 countries.
In the UK only 25 per cent of people polled said they felt fully prepared for their retirement, and 76 per cent did not know what income they will receive in retirement.
Some 13 per cent had done no retirement planning at all, which is unsurprising as 37 per cent have never received professional advice.
Only five per cent knew they would need to buy an annuity when they retire.
Mr Green said "Now is the time for people to seriously consider boosting their pensions contributions to improve their prospects of a comfortable retirement.
"The cost of procrastination is likely to be high."
Mark Twigg, Director at financial services consultancy Cicero Consulting, which carried out the research, said: "As the economic 'perfect storm' threatens it is important that people are encouraged to understand long-term risks and to manage them effectively.
"While people are taking more responsibility for themselves, there is also a definite role for financial institutions to continue, and to build on, their work to educate and inform."
Globally the need for greater pension savings was also highlighted by the report - and the greater stresses placed on nations.
By 2050, there are predicted to by 1.4 billion people over 65, up from the current level of 550 million.
In Japan by 2050, 40 per cent of the population will be over 65.
In the UK there are now more people over the age of 65 than under 16.
The HSBC report calls for necessary provisions to be made to stop the demographic time bomb, so retirement is seen as a new phase of life where people even consider starting a new career.
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