Almost half of consumers believe they will require an annual retirement income of over £25,000, according to Norwich Union.

In results of the study carried out by the insurer, some 47 per cent of respondents stated that they would need a retirement income of over the amount to enjoy a "comfortable" retirement.

An annual income of £25,000 is some 14 times more than the average level of annuity.

The research indicated that the average total pension value used to buy an annuity last year was £26,364, which provides a retirement income of some £1,843 annually - the equivalent of £154 per month.

Head of annuities marketing at Norwich Union Scott Brown commented: "Mention pensions or annuities and most people just seem to switch off. But when you ask them what income they will need in retirement, people have some very high aspirations."

Mr Brown added that the difference between what people want and what they actually get is "very different" and urged consumers to face up to their retirement needs.

Consumers were recently advised by Churchouse financial Planning that it was preferable to take out a pension with no financial advice than not take one out at all.