According to the BlackRock Investor Pulse survey of 4,000 people aged 25-74, the so called millennial mass affluent investors will face an average annual income shortfall of £28,000. Across age groups it was calculated to be £12,610.

The mass affluent investors involved in the survey said they will need an annual income of £32,456 in retirement and expected a pot of £396,910 will achieve this.

But Blackrock said they actually face an annual income shortfall of £12,610. This gap widened further among the millennial age group, who face the biggest disappointment.

They want an income of £43,103 a year and think £300,934 will be sufficient, but will in fact experience a shortfall of £28,057 annually. Even factoring the state pension, millennials are still going to be short by more than £20,000, the number crunchers said.

Age expectancy was also underestimated by respondents, with the average mass affluent millennial expecting to live to 80 when one in five of them is expected to live to 100, twice as likely as their grandparents, according to the ONS.

Some of this group said they believed they’ll be able to retire at 61.

Some 34% of mass affluent investors surveyed said they had only used an adviser for a one-off event. This presents an opportunity for advisers to demonstrate the value of long-term financial planning versus providing advice for one-off events.

Jeremy Roberts, head of UK retail sales at BlackRock, said: “Long-term low interest rates and the recent focus on pensions has pushed the need for income into the spotlight. However, instead of looking for ways in which to generate additional income, many still stick to the safety of cash. Cash is not going to keep us warm at night, especially in those extra five or 10 years that we haven’t even planned for.

“We’re all living longer, we’re therefore all likely to be working longer and cash just isn’t going to cut it. Putting off retirement planning is no longer an option and this is where advice is golden.

“We’ve seen that people who seek advice are truer to their ideal cash holdings, are more knowledgeable about investing and feel more empowered and relaxed. We also know that those that receive advice have near on 100% satisfaction levels. If we want to achieve the retirement we desire, things need to change and now.”