Vanessa Owen
A new study shows that more than 300,000 people in their early 60s have no retirement savings.
The survey by retirement specialist LV= also claims that the cost of happiness in retirement could be at least £225,756.
Eight per cent of 60 to 65s admitted they have no form of pension or retirement funds in place.
Based on this, an estimated 315,200 people will be relying on nothing but the state pension of £110.15 per week, or £5,727.80 a year after quitting work.
LV= warned that with nearly half of those still working yet to seek financial advice, the true shortfall in their pension will not become apparent until they retire.
Soon to retire Britons want, every year, an average of 21 days abroad on holiday, 468 hours doing their favourite hobby and 364 hours with the grandchildren.
Number crunchers at LV estimate the total cost of the contented retirement comes in at £10,820 per year based on today's typical £7,623 essential annual living costs – that is £225,756 over an average 17-year retirement.
This assumes extra cash is not needed to move to their ideal retirement location.
The eight per cent who admit they have no form of pension or retirement funds in place will find themselves falling short in their pursuit of happiness by £5,092 in their first year and £106,243 over the course of their retirement.
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Vanessa Owen, LV= head of annuities and equity release, said: "One cannot shy away from the fact that achieving contentment in retirement, as with any lifestyle, does come with a price tag.
"It's never too late to make a difference, but it's important that people plan for retirement as soon as possible and also explore all of the options available to them as retirement approaches, so they can maximise their income once their working lives come to an end."
More than a quarter of those with a pension do not know its current value, the researchers found.
The survey of 1,070 adults aged 60-65 years showed some are seeking even more, with 33 per cent saying only by holidaying for over a month every year would they be happy and eight per cent believed a £4,500 annual wining and dining social bill is necessary.
