A report from Scottish Widows finds those facing auto-enrolment under a landmark Government scheme are prepared to save just £51 each month towards retirement savings, a fall of 24% compared to last year, when the figure was £67.
Yet even those within existing "defined contribution" schemes - who contribute a larger amount - are facing a large gap between their expectations of income in later years and the reality of what their pension pots are likely to buy them.
The research showed those earning £10,000-£30,000 are, on average, expected to get about half their desired annual income. Contributions of £85 are likely to produce yearly pensions of £11,700, compared to a hoped-for £22,800.
The report said: "This shortfall between current savings and desired annual income in retirement indicates employees are still removed from the reality of retirement."
More than one million people have been enrolled in a workplace scheme since it was launched, but the Scottish Widows Workplace Pensions Report found the 8.6 million still be auto-enrolled were increasingly less willing to contribute.