The retirement readiness study by Aegon looked at saving behaviour, and whether people’s understanding, planning and pot size actually matched the lifestyle they were looking for.

It revealed a ‘seismic shift’ in people’s attitudes towards savings, with 12% of the UK population now ‘retirement ready’, up from 7% in April 2015. This means, in the last year, almost 2 million people have been able to put themselves on track for the retirement they want.

A key driver driver behind the change has been people being more realistic about the level of retirement income they are likely to receive.

Average annual income expectations have fallen from £42,000 in April 2015, to £38,000. However, this is still way off the £14,000 annual income the average person can expect to receive.

Despite the ‘significant upward shift’ in the number of retirement-ready Brits, the overwhelming majority – 88% – are falling short of their retirement targets.

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The study found that 33% of the UK public have never heard of the pension freedom rules, while a further 32% have come across them but don’t understand what they mean for their own retirement savings.

Others who are aware of the changes simply don’t know where to get help with their retirement options and 28% don’t know which way to turn.

But Aegon said more people are reviewing and improving their pension savings – in the last six months, 24% checked the performance of their retirement savings, up from 19% recorded in April 2015.

Women are still significantly behind men when it comes to their readiness for retirement, saving considerably less than men – £20,000 v £49,000.

Both men and women want more clarity from the government on how much State Pension they’re due to receive as 67% were unable to say what the new maximum per week would be (£155.65).

Steven Cameron, pensions director at Aegon UK, said: “We’re seeing a seismic shift in attitudes towards saving for later years, with 12% of the population now on track for the retirement they want. Across the UK, this means two million people have improved their saving behaviour, or changed their aspirations for retirement.

“As we enter an era of personal responsibility for retirement saving, it’s clear that the pensions penny is finally beginning to drop for the UK’s retirement savers.

“The range of radical government pension changes has certainly grabbed public attention. And it’s heartening to see people being motivated to engage with their future and meet the challenge of funding and planning for their retirement.

“But the job is far from done. 88% of the population are still falling short of their retirement targets.”

Cameron added that the industry and government need to “band together” to ensure that consumer confusion doesn’t creep back in. New initiatives, such as the Lifetime ISA and the secondary annuity market, must be clearly articulated, and mustn’t detract from the progress of auto enrolment.