The HL Savings and Resilience Barometer suggests that only 30% are heading towards a decent retirement.

When it comes to achieving a moderate retirement income only 69% of higher income households are on track.

It means many higher income households may have to significantly reduce their expenditure in retirement, warned Helen Morrissey, head of retirement analysis at Hargreaves Lansdown.

She said: “There’s a shock in store for higher earners. If they’ve been used to having plenty of money during their working life, they could face a nasty surprise and find their pension cannot sustain the lifestyle they’ve become accustomed to.”

She said the problem is compounded when looking at the percentage of high earning households on track for moderate retirement income.

Ms Morrissey said: “Just under seven in ten are on track for this which may seem high, but the likelihood is that a moderate income will nowhere near meet their needs.”

Moderate and comfortable retirement incomes are taken from the PLSA’s Retirement Income standards. It puts a moderate standard of living at £23,300 for a single person and £34,000 for a couple per year. A comfortable retirement costs £37,300 for a single person and £54,500 for a couple.

The latest version of the HL barometer has shown the financial resilience gap between higher and lower earners has continued to widen. Higher earners have seen their overall resilience improve in stark contrast to lower paid households.

Only 13% of households overall are on track for a comfortable retirement while just 39% are set to achieve a moderate retirement income.