A bleak retirement beckons for many middle aged people, new research suggests.

The research, carried out by the International Longevity Centre (ILC) on behalf of Standard Life, revealed that nearly one in three people aged between 40 and 55 are not saving nearly enough for the day when they finish work and begin their retirement years.

The ILC surveyed more than 6,000 UK people aged 40 to 55 last autumn. And one in four of that age group, known as Generation Xers, will either have no savings at all, or have to rely on the state pension, which currently stands at £9,300 per year for those who have a full National Insurance record.

The research also showed that a worrying 60% of Generation Xers who currently have defined contribution pensions are not putting enough ‘into the pot’ – and are facing the prospect of having a minimum standard of living when they retire.

A number of those middle aged people did not have the advantage of workplace auto enrolment earlier in their careers – and have also had to contend with financial crashes and a worldwide pandemic. They have also seen, in the main, attractive defined benefit pensions (final salary pensions) replaced by defined contribution pensions where the onus and decision-making is on the individual.

The ILC returned these worrying statistics:

• Only 7% of UK people aged 40-45 are actually saving enough for a moderate retirement lifestyle
• Around 44% aged 40-55 with defined contribution pensions have gaps of at least 10 years in their contributions. This rises to 48 per cent for women
• 28% aged 40-55 don’t have any pension savings at all, or will mostly or solely have to rely on the state pension to fund their retirement

The research also revealed that 23% of people aged 40-55 stated that they expect to have other ways of generating income before and during retirement.

Of that group, 26% said they had other savings and investments; 25% expect an inheritance of some kind; 23% plan to downsize or release equity from a property they live in; 14% say they will have support from a partner or family member; and 11% said they have other property investments.

The fact that so many people don’t have adequate pension pots, and face financial uncertainty in their retirement, has led to a plea to employers.

Bosses are being encouraged to introduce ‘mid-life MOTs’ for their employees, those Generation Xers. The MOTs would offer insight and guidance and help people understand their financial situation – and go even as far as offering planning support for later life.