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As inflation rises and employment uncertainty dominates people's lives the number of people who feel they cannot afford the 4 per cent contribution to a personal account come 2012 is increasing, according to research.

A survey by B&CE Benefit Schemes found that more than a third of workers who are not currently saving for retirement claim the cost of living prevents them from doing so and that 28 per cent of workers doubt they will be able to afford the proposed contribution to the government's personal accounts, a 9 percentage point increase on the 19 per cent that felt this way in February.

While general support is still strong for the scheme - with two-thirds supporting plans for auto-enrolment - only a third of workers believe the scheme will provide a reasonable retirement income.

John Jory, deputy chief executive of B&CE, said: "When money is tight there are always more pressing things to do with your wages than put it in a pension. So the government should be applauded for taking action that supports savers.

"The launch of the personal accounts regime in 2012 will give people another simple pensions vehicle. If a scheme is going to be successful it has to have the support of both individuals and employers. People who save for their retirement should always be demonstrably better off than those who do not."

At present, the government proposes auto-enrolled employees pay 4 per cent of their net salary into a personal account to be matched with 3 per cent contribution from the employer and benefit from 1 per cent contribution through tax relief.