PPI head of policy research, Daniela Silcock, said: “Changes in the way people work, save and retire mean that traditional measures of adequacy are not as relevant as they used to be.
“A new consensus is required to generate retirement income adequacy targets which people can use, and which allow for both income and liquid capital in retirement.
“Achieving a consensus will not be straightforward as it requires agreement from industry, employers and unions and the overall support of the Government in order to ensure all key stakeholders play their parts.
“Therefore, action from the Government to pursue this agenda will be necessary soon, to help prevent future generations of older people from experiencing poor retirement living standards.
“These stark figures underscore the urgency to develop relevant, accessible and achievable adequacy targets for those saving today, and for future generations.”