Whilst the majority of UK workers between the age of 43 and 58 have clear aspirations for their retirement, only 12% have clear financial goals and a budget for retirement, according to a new report.

Whilst over half (53%) of Generation X workers are confident they will have a comfortable retirement, just 41% were not, according to the report from Barnett Waddingham.

The survey of over 5,000 UK workers revealed a concerning gap between retirement dreams and reality.

Those between the age of 43 and 58 (Gen X) were most likely to have a mismatch. Only 12% had clear financial goals and a budget for retirement, whilst 33% had a rough idea, 16% had not planned yet but were going to, and 13% had no plans and no plans to start planning their finances.

However, they did have big dreams for their retirement. Over a third (39%) said they want to travel abroad, 32% want to start new hobbies, 19% plan to move to a new place, 9% want to redecorate the house, and 5% want to start their own business.

Paul Leandro, partner at Barnett Waddingham, said the lack of Financial Planning means that these Gen X’ers could be in for a harsh reality shock.

He said: “There is a chasm between expectations and reality when it comes to Brits thinking about their retirement. People - especially those in their 40s and 50s - are being driven to dream of a retirement filled with travel, pursuing hobbies, and even a life overseas.

“But the life on offer may be a mirage; the aspirational lifestyle so readily on display by their parents and loved ones today is most likely funded by DB pensions - a luxury which won't be there for the retirees of tomorrow. Without a notable shift in saving patterns, many will be in for a rude awakening. Aspirations with no plans are just pipe dreams.”

More than half of Gen X (51%) had a DC pension, while only 30% have a DB one. Half (49%) of this cohort believe the state pension will be critical retirement income. With the current UK State Pension providing a maximum of £10,600 annually, this reliance could leave many retirees struggling.

The Barnett Waddingham report said that the UK is on the brink of a retirement crisis, and called on the government to reevaluate the pensions system to avoid a crisis.

• Barnett Waddingham commissioned Censuswide to survey 5,032 UK employees and self-employed people aged 18 or older, at least 3,000 of which are over 50 and all of whom plan to retire in their lifetime.