Pension schemes run by small firms are failing to produce a sufficient retirement income.
Pension contributions need to double to achieve a reasonable retirement income.
Over a third of employees working for smaller firms are expected to opt out of the new government pension scheme planned for 2014, according to the Association of Consulting Actuaries (ACA).
All UK firms will be required to auto-enrol their employees into the new workplace pension scheme, called the National Employment Savings Trust (NEST). However, staff members can choose to opt out if they wish.