Less than a fifth (19%) of people on middle incomes who are aged between 32 and 40 years old feel prepared for how they will fund their retirement, a survey indicates.
People were defined as being on a middle income if they had a personal income of between £25,000 to £44,999 a year.
Just one in 10 (10%) had taken professional advice, the research for Aviva found.
The pensions provider raised concerns that people could “set and forget” their default choices around their pension contribution levels, retirement age and investments, perhaps under the mistaken belief that this will be guaranteed to meet their retirement expectations.
Emma Douglas, director of workplace savings and retirement at Aviva said: “Default strategies and settings will meet the needs of a wide range of investors – with different ages, backgrounds, and income levels – and, for many, they can be the right choice.
“By their very nature, default investment strategies are designed to do the ‘heavy lifting’ for you, putting the investment decisions in the hands of the experts.
“But we also know that while defaults are essential, making small active changes to your pension, particularly increasing contribution levels, can have a significant impact.”
Aviva’s research included a survey of 3,000 adults across the UK, which was carried out by Ipsos.