The PLSA standards say a single person would need a retirement income of £20,800 per year to achieve a moderate standard of living while a couple would need £30,600.

This includes the state pension which can be worth up to £9,340 per year per person.

Generation Z are least likely to be on track with their savings with only 17.7% on track to hit this target.

Generation X are the best prepared with 45.2% on track to hit the moderate level of income highlighted by the PLSA retirement income standards at retirement, according to the Hargreaves Lansdown Savings and Resilience Barometer.

Over a third (36.1%) of Millennials are on track.

Of the highest income bracket measured by the barometer, 71.5% are on track to hit this target.

It then drops steeply for the next highest income group to 47.2%.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Most people would like to think they will be able to afford a few luxuries here and there during their retirement years, but this data shows we are way off track with less than 40% of people on course to enjoy a moderate lifestyle in retirement. Without action many people face living only the most basic standard of living in their later years.”

In partnership with Oxford Economics the HL Savings and Resilience Barometer measures the financial resilience of the UK every six months.

The Barometer draws together 17 data points from a number of official data sets, across five pillars to provide a holistic measure of the state of the nation’s personal finances.

The five pillars are: controlling your debts, protecting your family, saving for a rainy day, planning for later life and investing to make more of your money.