They may struggle to afford food and heating in retirement, according to Scottish Widows’ National Retirement Forecast published today.

Just 36% of the population are headed for a comfortable retirement, according to the report.

Renters and young people are disproportionately facing hardship, with 43% of those struggling in retirement expected to still be paying rent.

Rental costs amount to 60-70% of renters’ retirement income in several parts of the country, rising to 130% in London.

Almost half (41%) of people currently in their 20s are heading for hardship in retirement, with an average retirement income of £10,000.

In comparison, 43% of millennials are on track for a comfortable lifestyle in retirement.

Over half (51%) of disabled people are expected to face poverty in retirement, with the average disabled person expected to manage on £11,000 per year in retirement – just 61% of the income predicted for non-disabled people.

On average, women will receive a third less income in retirement than men (£12,000 vs £19,000).

Pete Glancy, head of policy at Scottish Widows, said: “Our new National Retirement Forecast paints a stark picture – one in three (35%) of us are facing the harsh reality of a retirement where we will struggle to make ends meet.

Last year’s Retirement Report highlighted the impacts of the pandemic, cost of living and wage stagnation. This year the pressure seems to have intensified due to increasing inflation and interest rates continuing to climb.

“The solution needs to be threefold. We are calling on the Government to help end retirement poverty by implementing long-term reforms, such as ensuring that automatic enrolment can support those on lower incomes.

"Secondly, businesses need to do more to address the inequalities faced in the workplace by disadvantaged groups like women, disabled people and the LGBTQ+ community. Finally, the financial services industry must get better at effectively communicating with diverse groups to build trust and ensure that people of all incomes and demographics understand how to save effectively for retirement.”

• YouGov surveyed 5,072 Britons on behalf of Scottish Widows between 21 March and 5 April. A further survey of 1,352 ethnic minorities took place between 21 March and 6 April.