Retirees looking to achieve the £144 per week flat-rate state pension level with an annuity purchase today would need a pension pot totalling £130,000, according to analysis from Prudential.
The government's white paper on state pension reform means everyone retiring from April 2017 will get £144 per week, equivalent to an income of £7,488 a year.
Prudential's analysis found a 65-year-old today would need a £130,000 fund to generate the same £144 a week, assuming they secured the highest possible single life annuity without a guarantee.
Vince Smith-Hughes, retirement income expert at Prudential, said: "The flat-rate state pension reform will be the biggest overhaul of the system for decades and is a very valuable step forward.
"Private pension savers need funds of up to £130,000 to match the flat-rate state pension but they now know that any savings will benefit them and will not affect benefits.
"The new system improves the safety net for pensioners in the UK but should only ever be regarded as part of an overall retirement plan and the real income shock for many will come when the gap between their current earnings and the state pension becomes apparent.
"Maintaining your standard of living in retirement means saving as much as possible as early as possible and joining a company pension scheme where feasible."
Andrew Tully, pensions technical director at MGM Advantage, said the pensions overhaul brought much needed "simplification to a very complex area of pensions".
He added: "For too long we have grappled with a complex and difficult to communicate system which sometimes punished those who saved. Now the government has proposed a system which removes ambiguity leaving it clear for individuals to plan for their financial future with confidence."
However, the annuity provider said many will view the state pension as a base income which they would like to build on.
It calculated how much a person would need to save to effectively double their state pension, taking into consideration investment returns, inflation, rising state pension age, and index-linking of the flat-rate £144 a week state pension.
For example, someone who is 25 today and expected to retire aged 69 in 2056 would need a fund valued at £660,000, equating to about £3,100 gross annual savings to generate £416 a week (what their state pension would be) privately.
A 45-year-old today, set to retire at 67 in 2034 would need a fund valued at £415,000, equating to about £9,000 a year gross savings to generate £242 a week (what their state pension would be) privately.
"For the many people who would like more than £144 per week income in retirement, these figures illustrate that it's crucial to start saving as early as possible. These amounts can seem daunting but that shouldn't deter people from starting to take control of their retirement income," Tully added.
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