Andrea Rozario, director general of SHIP, said: “The Report makes extremely concerning reading as not only does it highlight just how unprepared many people are for retirement but also how much the Government will be forced to find to finance this deficit over the coming years.
“There are almost 18 million over 55s in the UK and with the largest single source of income for those who are retired being the state pension (24%), the public purse is likely to be significantly stretched going forward.
“In addition, when you take into account that for every year of retirement, people actually only work for one year and ten months, you can see that something drastic needs to happen to change how the UK views and finances retirement.
“The UK’s over 55s have a significant amount of equity in their homes and it would seem logical that people should use what is likely to be their greatest asset to finance a period of economic inactivity which can last up to 30 years.
“We welcome this report from Aviva and hope that it makes everyone think harder about the financial challenges we will face as a country with a rapidly ageing population.”