Only 18% of renting households are on track for a moderate retirement income - a 2% decrease year-on-year, according to the HL Savings and Resilience barometer.

Renters from all generations were much less likely to be on track for a moderate retirement income.

The barometer suggests rapidly rising rents are hitting retirement planning for renters.

Only 19% of Millennial households who rent were on track for a moderate retirement income in comparison with 50% of homeowners in the same generation.

For Generation X and Baby Boomer households 15.5% of renters were on track in comparison with 56% of homeowners.

Single parent households (17%) and the self-employed (24%) were also less likely to be on track for a moderate retirement income. This compared with 20% of single parent households and 28% of the self-employed who were on track last year.

The cost of funding a moderate retirement income has soared from £20,800 to £23,300 per year for a single person over the past year, according to the Pensions and Lifetime Savings Association.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Retirement resilience continues to slide, leaving more vulnerable groups even further away from being able to enjoy a decent retirement. A heady mixture of rising prices today makes it more difficult to save for tomorrow and the cost of funding a moderate retirement income is being pushed ever higher.

“Single parents already have a tough time making ends meet in comparison to their coupled-up counterparts. We did analysis earlier in the year showing the average single person’s outgoings are £860 more a month as they have to fund the cost of housing, food and bills on their own.

"This flows through into retirement, with the latest data from the Pensions and Lifetime Savings Association putting the cost of a moderate retirement at £23,300 per year for a single person and £34,000 per year for a couple.  If you add a child into the mix, then their money needs to stretch even further and this can mean it’s difficult to find the money to put into a pension.

“Renters also face an uphill challenge when it comes to saving for retirement, as rising rents take a chunk out of their income. This gives them less money not only to save for retirement but also to get that all important first step on the housing ladder.

"This means they either buy much later, or not at all and face paying housing costs later into retirement – if they never get on the housing ladder then they need to fund rent for the rest of their lives. These costs are significant and push up the amount that needs to be saved for retirement but yet again the financial pressures of today just don’t allow for it for many people.”

The data was taken from the HL Savings and Resilience Barometer, July 2023.