More than a fifth (21 per cent) of people do not have a pension, including one in 10 people over the age of 55, according to figures from MoneySupermarket.

The price comparison site’s analysis of enquiries into life insurance revealed that 17 per cent of 45 to 54 year olds had no pension, along with 29 per cent of 35 to 44 year olds.

MoneySupermarket also found that two-thirds of enquirers across all age groups appeared to underestimate how much pension savings they will need for retirement, with almost one in five (19 per cent) stating that they could manage with a pension pot of just £50,000, which is 81 per cent less than the recommended £262,500.

Nearly half (46 per cent) of those aged 55 and over had also not yet written a will, while three-fifths (60 per cent) of those aged 55 and over did not have life insurance, leaving themselves facing the possibility of facing higher premiums.

MoneySupermarket life insurance expert, Neal Cross, commented: “It’s interesting to see the number of people enquiring about life insurance across different age groups that are yet to prepare their financial futures.

“The importance of life insurance, pensions and wills are often overlooked, which could explain the disparity between the recommended pension pot of £262,500 and how much people believe they’d need to get by.

“Life insurance premiums increase by age, therefore, the longer you wait to get it, the higher your monthly payments are likely to be. Similarly, if you stop paying for life insurance and repurchase it at a later date, your premiums will still go up, purely down to the fact you will be older when reapplying.

“So, it’s recommended to start making your monthly contributions towards your pension as early on as possible making sure your next of kin are covered in the event you pass away.”

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