Almost three quarters (74 per cent) of Brits, in the UK and abroad, are not on track to retire with sufficient funds to maintain their current lifestyle, research from deVere Group has found.

DeVere's survey suggested that many people underestimate how much they need to save for retirement, which could have grave long-term implications. 

The survey also revealed that the primary reason cited by respondents for not being on track was insufficient savings.

The research also found that many Brits were not considering the full range of factors that could affect their retirement, such as inflation and healthcare costs. 

When asked what percentage of their current income they could live on in retirement, most respondents “grossly” underestimated how much they would need.

DeVere said inflation was just one of the key issues identified by their survey, with inflation running at an average of 3.5 per cent, retirees would need to double the amount of money in the future to maintain their current lifestyle.

The survey also highlighted a lack of awareness around the importance of investing as part of retirement planning, with the firm saying that many focus solely on saving, not realising how "critical" investing is to grow their wealth over time, particularly with inflation eating into their savings.

Commenting on this, DeVere Group CEO, Nigel Green, said there is a retirement crisis “looming” for Britons and too many people are simply not saving enough, and they don’t realize just how much more they will need to retire comfortably in the future.

Green explained: “It’s not just about what you have in the bank today, it’s about the real value of that money when you retire. 

“If you’re earning £50,000 today and you think £1m will be enough to sustain that lifestyle, you need to consider inflation. 

“In 20 years time, with inflation running at 3.5 per cent, you’ll actually need £2m just to have the same spending power that £1m gives you today.”

He added that people often believe they’ll spend less in retirement but in many cases, the opposite was true.

“You might spend less on commuting and work-related expenses, but healthcare costs increase, and many people find that they want to spend their time traveling, spending time with family, and engaging in hobbies,” he continued.

“These things all cost money, and if you’re not prepared, it’s easy to run out of funds.

“It’s not just about saving; investing is essential to building a retirement fund that will last.

“The compound effect of investing over time can significantly boost your retirement savings, helping you achieve a sustainable income in retirement. 

“Simply saving without investing can lead to serious shortfalls, especially when inflation is taken into account.”

Green urged people to take action to secure their financial future and said it was “vital” to regularly review retirement goals, evaluate how much is needed to live comfortably and adjust savings and investment strategies accordingly. 

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