Almost half of workers aged over 50 will have to work an additional 11 years post-state retirement age to replicate their current living standards in retirement, research has shown.
A Pensions Policy Institute report concluded the vast majority of over 50s would only meet a minimum standard of living if they retired at 65.
However, it said for many people an income in retirement at this level - about £11,000 - was unlikely to be considered adequate.
The research, The implications for retirement income of government policies to extend working lives, was sponsored by a consortium of Age UK, the Institute and Faculty of Actuaries, Aviva and Partnership.
IFoA president Jane Curtis said: "It is clear that improving financial literacy in the UK would have a significant impact on the ability of individuals to better understand and plan for their financial futures.
"Improvements to communications materials, removing jargon, demystifying the products that help people to save for their retirements or insure against health issues can only be a good thing."
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