Consumers need to have more realistic expectations of how much they will need to save for a healthy retirement income, according to a new survey.

Figures from pension provider Friends Provident reveal one fifth of Britons believe they could live a comfortable retirement on less than £50,000.

However, by the time they reach pension age, £50,000 will equate to just £44.24 a week ( a quarter of the minimum wage of £162.80).

Many will rely on the state pension to top up the amount they live on each week, currently £84.25 a week, but combined with £50,000 that is still only £128.49 a week.

One third of people in UK have no idea how much of their monthly income they should invest to create a pension that will accommodate their retirement and 35 per cent have no idea how much they can afford to invest in their pension on monthly basis.

"The continued lack of understanding of pensions is a serious issue and by ignoring this, the British people are facing a pension time bomb," said Jeremy Ward from Friends Provident.

"Despite the importance of saving for retirement having a high media profile in recent months, the message still isn't getting through and consumers are still confused about when they should start saving and how much they should put away each month. This is a wake up call for consumers to start saving sooner rather than regretting it later."