Britons are in for a rude awakening if they expect their quality of life to be the same when they reach retirement age, according to new research.

Barclays bank's Misery Gap 2000 Report said the amount people put aside each month for later life is far below the level it should be.This is despite the fact that expectations about the life people will lead in retirement is increasing.

Figures in the report show that over the past four years, average national earnings have shot up by 19 per cent. By contrast, average monthly pension contributions have increased by a just three per cent, or £4, to £128.

Barclays estimates the average pension contribution should be nearly £20 more, at £147, for people to stand any chance of living the life they expect once they give up the day job.Worse still, the report shows that one-third of people still do not have any pension provision.As a further sobering thought, Barclays points out that 40 per cent of pensioners today survive on less than £10,000 a year.

"The misery gap has widened since we first identified it in 1996," said Bob Dench, managing director of Barclays' investment management division.

"A low cost pension scheme is affordable, easy to set up, has no penalties for stopping and starting contributions and should provide people with sufficient income in retirement."

The report found that Britons today have several unrealistic perceptions about what life in retirement is likely to be.Nearly 80 per cent believe they will be able to go on one foreign holiday every year - only half of pensioners actually do.

Two-thirds believe they will still be able to eat out in restaurants, yet only one-third of those currently in retirement can afford to do so.

Also, two-thirds think they will go to the theatre or cinema regularly, whereas only 28 per cent in retirement have enough to take in a play or see a film.