Despite an inflation busting uplift, the State pension will provide just over £240 a week. At that level, building up your own retirement income funds through workplace pensions, SIPPs and ISAs, and understanding how long you will need that income, is fundamental.

Many underestimate this last factor and risk outliving their savings as a result. Research from Aviva found that one in three 70-year-olds said they had already lived longer than expected. This is an ongoing under-estimation, with almost seven out of 10 of these retirees saying they did not expect to live beyond 85.

In reality, a 70-year-old man can expect to live to 86 and a woman to 88. Both have a one in four chance of reaching 92 – so should plan for this eventuality.

To return to that £240 a week State pension - if it isn’t enough, what sort of income should you be targeting for retirement? Pensions UK’s Retirement Living Standards estimates a single person needs £31,700 a year for a ‘moderate’ standard of living (and a couple £43,900). This translates to around £610 a week (or £844 for a couple) — significantly more than the State pension. Time to get saving.

✣ The value of pensions and investments and the income from them can fall as well as rise. You may get back less than you invested.

Past performance is not a reliable indicator of future performance.

Occupational pension schemes are regulated by The Pensions Regulator.