Disillusionment with pensions has led to a worrying proportion of savers describing the plans they are making for retirement as 'a waste of money'.
Twelve per cent of pension savers over the age of 45 told insurer MetLife that they wish they hadn't bothered saving for retirement, while another six per cent say they are unhappy with the investment returns on their savings.
The past six years of economic turmoil has shaken the confidence of savers and three-quarters of those with pensions are now less than assured in stock markets to deliver their retirement ambitions.
Confidence shaken: Poor investment returns during the financial crisis has led to a disillusionment among pension savers about whether it was worth saving at all.Nearly half of those surveyed said they were pleased to have saved for retirement, but are concerned about the final level of income, while 22 per cent are confident their savings will deliver their desired return.
But while many will have received employer contributions, not to mention tax relief, they would not have otherwise got if they weren't saving into a pension, some still have regrets about choosing a pension as their retirement vehicle.
More... Pension payouts tumble by 29% since money printing began - but there's hope on horizon with rates tipped to rise Lack of retirement savings 'biggest threat to British quality of life' as many pensioners still expected to sell home to pay for care Is equity release right for you? Check out our free guide Retiring soon? Get an annuity quote Need some advice on how to afford your retirement? Find a local financial adviserDominic Grinstead, MetLife UK managing director, said: 'Long-term equity investment remains the most effective way to provide an income in retirement but it is also clear that the events of the past five years have hit confidence and undermined faith in pension saving.
'The Government has worked hard to make retirement saving pay with plans for a universal state pension, auto-enrolment into company pensions and changes to the rules on taking retirement income which allow greater flexibility.
'However the retirement income industry has to work harder to rebuild confidence and our research shows that guarantees which are affordable have an important role to play in ensuring that people do not end up feeling they have wasted their money.'
Performance of stock market related investments is only half the story. In most cases retirees need to use their pot to buy an annuity to provide a guaranteed return. Annuity rates have dropped significantly during the financial crisis, and though they have improved since the troughs of last summer, a £100,000 pension pot will at best buy you an income of around £5,800-a-year.
Results of a Money Mail investigation will no doubt add to the frustration of pension savers, as it revealed that insurance firms can pocket as much as £29,000 profit from a £100,000 annuitised pension pot.
Such is the concern among some savers about their pension investment prospects, that almost half of those responding to MetLife said they would consider paying for guarantees on their funds, which would see them protecting their capital in return for giving up some of their gains.
But while incomes may not be as high as they expected, pension holders might be glad for every penny saved come retirement, particularly in light of paying for long-term care.
Matt Phillips from pension investment adviser Broadstone told This is Money this week that a lack of pension saving is the 'biggest threat' to British quality of life and urged people to save early and save quickly for their retirement so they don't become a financial burden on their family in the event they go into care.
The Government has capped lifetime care costs for individuals at £72,000, but many still believe they will be forced to sell their homes to fund care, as their retirement income is insufficient to cover it.