RADICAL action must be taken on pensions in the light of new research revealing people's ignorance about their retirement income and widespread anxiety about pensioner poverty, Help the Aged said.

The charity said research it commissioned showed pension provision was "exceedingly" poor despite massive yearly investment by the Government for the poorest pensioners.

It is urging a radical overhaul of the system to one based on residency rather than contributions so pensioners now and in the future will be better served.

A Mori research study for the charity found some 10 per cent of working adults expect to rely solely on the pension to support themselves in old age.

Help the Aged director general Michael Lake said: "The clear signal to the Govern-ment is that more needs to be done to help the poorest pensioners today, as well as better explain how the pensioners of tomorrow can guarantee a secure retirement."