More than three quarters of pension pots matured with less than £50,000 in assets last year, showing savers are not putting enough money aside for retirement.
New research from Bowmore Financial Planning found this was the case for 77 per cent of defined contribution pensions - equivalent to 565,903 pots.
It also found 43 per cent held less than £10,000, compared with just 5 per cent holding more than £250,000.
Mark Incledon, chief executive at Bowmore Asset Management, said: “Inflation has pushed up the cost of retirement rendering even more pension pots inadequate.”
Data from the Pensions and Lifetime Savings Association shows the average level of annual income required for a single person living a comfortable retirement is £43,000 while for couples this is £59,000.
Bowmore said the low size of pensions has been partly caused by savers deferring investing into their pots during the cost-of-living crisis.
Incledon added: "Whilst saving does at times require financial discipline, the greater the efforts you make during the earlier stages of your life, the greater the rewards will be in retirement."
He said while the introduction of auto-enrolment has helped the situation, for most the workplace pension will not provide enough for a comfortable retirement.
He added saving from an early age is a key to building wealth for later on in life and improving the standard of living in retirement.
tara.o'connor@ft.com
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