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This damning prediction, which is made in Watson Wyatt’s Pension Plan Design Survey 2008, would be a staggering increase from current levels, as only 6 per cent of DB schemes are currently closed to future accrual.

The report goes on to warn that the proportion of DB schemes open to new entrants is also expected to fall to just 14 per cent over the same period. Currently 25 per cent of schemes are open to new entrants.

On a more positive note, Watson Wyatt said the market is seeing an increased focus on defined contribution (DC) provision instead. Over 60 per cent of employers predicted that employer contribution rates to DC plans would increase over the next five to 10 years.

Total contribution rates to DC plans has already increased by almost 2 per cent of salary over the last two years to an average 14.7 per cent. This figure increases to an average 16.9 per cent for plans with matching employer contributions.

Meanwhile, half of those employers questioned said they expect to attempt to remove their DB legacy, either through a pensions buyout or other type of transaction, within the next 10 years.

Kathryn Armitstead, a senior consultant at Watson Wyatt, said: “A small but growing number of companies are ceasing final salary accrual for existing members and this trend is expected to accelerate. Others are increasing member contributions or reducing the rate of accrual.

"However, many of the organisations in our survey see great value in providing pension benefits to their staff. With the majority of many organisations’ employees now in a DC scheme, employers are looking to shift resources to DC provision.

"We are seeing employers increase the contribution rates to their DC plans in order to deal with the twin issues of longer life expectancies and low interest rates which are leading to lower benefits than were originally envisaged for members."

DC plans now make up 75 per cent of open work-based pension plans, and on average the plans provide employer contributions worth 9.5 per cent of salary in return for employee contributions of 5.2 per cent.