A 'pensions map' devised by JP Morgan Invest suggests that 64 per cent of UK workers will face a 'difficult' retirement – receiving a pension of 40 per cent or less of their final salary weighted against the cost of living.
But 66 per cent of Britons think they will retire with a pension equal to at least 40 per cent of their final salary.
The survey points to ignorance about the scale of saving, says JP Morgan, noting that 59 per cent of the UK workforce interviewed didn't know how much they should be saving in order to secure an income of £25,000.
The worst affected region of the UK will be eastern England, where 67 per cent of workers may experience difficulty, whereas in the north-east, the figure is only 59 per cent.
"Most workers still don't understand the reality of the situation for them personally," commented David Cassidy, chief executive of JPMorgan Invest.
He called on employers to "educate the workforce" and encourage employees to "plan and save".
A recent Scottish Widows survey found that almost a quarter of British employers would cut contributions to existing staff when the new pensions provisions come into force in 2012.For more about pensions, click here.