Almost one in 10 (9 per cent) people expect to be fully reliant on the UK state pension in retirement, while two thirds (66 per cent) say they will be dependent on it ‘to some extent’, according to Hargreaves Lansdown.

The survey of 1,500 people by Opinium, on behalf of Hargreaves Lansdown, found that 19 per cent believed they will be heavily reliant on the state pension when they retire, with 14 per cent unsure.

The research also revealed a gender divide, with women (68 per cent) reporting they will be more reliant on the state pension than men (64 per cent).

Hargreaves Lansdown said analysis carried out with Oxford Economics found that 92 per cent of people would be able to meet their essential retirement needs using a combination of the state pension and their pension savings, compared with just 42 per cent without the state pension.

Hargreaves Lansdown head of retirement analysis, Helen Morrissey, described the state pension as the “very foundation of our retirement income” in the UK.

She explained that while a state pension currently at £241.30 per week would be enough to cover the basics, for the “vast majority it will be nowhere near to live the lifestyle they enjoyed while they were working”.

“The reality is that if you want a retirement where you can afford more than just the essentials, or you want the flexibility to retire early, then you will need to make the most of your pension,” said Morrissey.

Automatic enrolment has increased workplace pension saving and should therefore help reduce long-term reliance on the state pension, although Hargreaves Lansdown argued that savers may need to increase contributions into their pension savings.

For example, a 22 year old earning £25,000 could increase their projected pension pot at age 68 from £477,500 to around £550,000 by raising contributions to 10 per cent from age 32.

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