The majority of UK workers are heading for a financially tight retirement with incomes set to be cut by an average of about a half when they retire, according to a report from the Fidelity Retirement Index which examined levels of pension saving across the UK.
The study found many workers have little or no savings and face a retirement income below national minimum wage levels.
It also said people with a final-salary pension plan would enjoy a much higher retirement income than those without.
Workers who are members of final-salary schemes are on track to build-up the equivalent of 85% of their working life income in retirement, Fidelity said.
However, workers who are members of money purchase schemes - where the level of retirement income depends on investment returns - are headed for an income of just over half what they earned at work.
Workers without any sort of workplace pension and have to rely on the state or their own savings are set to do even worse.
"The pension savings and state benefits of the average family still fall well short of the recommended income replacement rate of 66% (100% being working life income)," said Simon Fraser, president of institutional business at Fidelity International.
"It seems the UK working population also has unrealistic expectations of when they want to retire - the desired age currently stands at 62," he added.
Mr Fraser warned that unless Britons saved more a generation of workers would be condemned to a later and more "meagre retirement".