Pension funds are not enough to sustain a decent standard of living during retirement for some, according to MGM Advantage.

A survey has shown that over 11 million expect to have a worse standard of living during their retirement than they do in work because they do not have enough income to sustain their lifestyle.

The research was carried out last month and asked over 1,000 non-retired people in the UK about their expectations for retirement based on the pension they expect to have to receive.

A third said they are expecting their standard of living to decline slightly in retirement, whilst only 12 per cent think that it will improve and almost six million people expect to have a significantly worse standard of living.

And despite having much more leisure time, only a third of people anticipate taking more foreign holidays and only one in five expects to be able to afford to dine out more.

Aston Goodey, sales and marketing director at MGM Advantage said: “People who have worked hard all of their lives are now facing the prospect of not having sufficient income to maintain their current lifestyle.

“They are even expecting to take fewer foreign holidays and dine out less – things that most people look forward to once they have more time on their hands.

“We believe for people approaching retirement to have the best possible chance of maintaining their existing standard of living, they need to take steps to enhance the level of income.”

He advised that shopping around using the open market option to find the best annuity rates or selecting a retirement income product that maintains exposure to the stock markets can help make the most of savings in retirement.

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© Fair Investment Company Ltd