Last week's Turner report suggested a compulsory national pension scheme, increasing state pension age to 68 by 2050 and helping people work to an older age.

"Firms not running pensions will contribute at least 3% of gross pay to the national scheme," said Dani Novick, managing director of print recruiter Mercury Search and Selection. "It's like increasing National Insurance by the back door and must be squeezed into their business plans.

"And, if older staff hang about because they can't get decent pensions, it will be hard finding space for fresh blood. Smaller firms can't do a Polestar and take on 100 apprentices."

Barry Dixon, secretary of the printing industry pension scheme, said: "My worry is that firms with big occupational schemes may downsize to the basic national scheme, which will never be as good.

"And having to contribute to an employer's scheme will hit smaller firms. If they go under, such payments could be contributing factors."

General secretary at Amicus Derek Simpson said: "We are glad that compulsion is seen as the only way to tackle the pensions crisis.

"However, we oppose raising the retirement age because many of the poorest people will die before receiving pensions they work their whole lives for. Minimum employer contributions should be 10%."

Turner report: key points
National pensions saving scheme
- Increase state pension age to 66 by 2030 and to 68 by 2050

- Help later working and flexible retirement

- Link state pension to earnings growth

- Visit: www.pensionscom mission.org.uk