Some 87 per cent of all advisers contacted maintained that personal accounts would lead to a levelling down of contributions and the danger of complete closure.

Of those advisers who held this opinion, one commented: “If you have to choose between paying eight per cent of the salary bill for 250 employees, or three per cent of the salary bill for 350 employees, which will you go for? Out come the calculators, and Bingo! There’s your answer!”

However, 13 per cent disagreed, one arguing that employers did not reduce wages when the minimum wage was introduced and this would prove no different.

Pensions minister Mike O’ Brien recently announced the government deadline for the introduction of personal accounts in 2012 will be met.

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