Retirement savers are targeting an average annual income of £13,100 from their private pension funds despite currently having just £59,000 in their fund, according to research from Key Retirement.

The study shows the average over-45 retirement saver could be left disappointed: someone expecting a £13,100 income from their private pension savings would need a fund of around £267,000 in today’s money to earn that much from an annuity.

And even if they factor in the State Pension they will still be a long way short, Key has warned. The current maximum basic state pension of £6,029 would still leave them needing a fund of more than £118,000 – double the £59,000 they currently have saved.

But the study shows they have other substantial assets which could play a major role in delivering retirement income – the average over-45 has total assets including property, savings and investments worth nearly £219,000.

Key believes the launch of pension freedoms will trigger a surge in interest in new approaches to accessing retirement wealth including equity release.

Dean Mirfin, group director at Key Retirement, said: “Pension freedoms will open up a wide range of options for savers to use all their wealth to deliver a retirement income and people need to look beyond pension funds.

“It is clear that savers have unrealistic expectations of how much their pension savings will deliver but at the same time have built up substantial wealth in other assets including their homes.

“By looking at assets in the round, people can achieve the comfortable retirement they are looking for. Attitudes will shift as retirement savers recognise their property investment, if used wisely, can provide a major boost to their lifestyle in retirement.”

The figures show a substantial gap between male and female retirement savings; the average man has nearly £69,000 saved while women have £21,200. Their income expectations vary widely too – men are targeting £16,100 a year and women £9,350.

The findings show that 21% expect to receive less than £10,000 per year from their pension pot and 24% are expecting more than that. 55% said they didn’t know how much they will receive.

Key’s research shows 49% of working over-45s do not know much they have in assets and the average of just under £220,000 covers a wide range. Around one in 10 estimate they have less than £10,000 in assets while 11% have £400,000 or more.