So how comfortable will you be when you retire? Are you planning to live off the equity in your home, or sell your business? According to Towry, in order to achieve an annuity paying out £25,783.87 after tax, a non-smoking male looking to take his annuity from age 65 would need to have a retirement fund of £616,400.

Kate Turner, head of wealth advice, Towry, said: "Many of those who think they are on track with their savings and retirement planning may be well advised to commit more of their finances to their pension pot if they want to maintain their current lifestyle in retirement.

"The sheer scale of how much you need to save in order to provide the standard of living you would like in retirement may well shock many people, especially in the current low interest rate environment.”

So is Ms Turner, right? Errr…yes.

You’d better get saving.

© Investment & Business News 2013