A new campaign group is calling for compulsory pension contributions for employers and employees.

According to the Trades Union Congress (TUC), Which?, Help the Aged and Age Concern, the government and employers are 'retreating' from providing a decent retirement income for workers.

Most people, meanwhile, cannot afford to save for a pension and even those that can are not saving enough, the organisations say.

The People's Pensions Coalition, the name of the new campaign group, believes compulsory savings should be introduced for both employers and workers to provide an adequate additional pension on top of that provided by the state.

It also says workers should be given more choice about how and when they retire.

Gordon Lishman, director general of Age Concern, said: "Building a national consensus on pensions which addresses the key principles of reform is crucial.

"A complete overhaul of the system is needed to tackle widespread pension poverty, ensure fairness for those on modest incomes and give women and carers the chance to build up a decent retirement income."

Business groups are firmly against compulsory savings. According to the British Chambers of Commerce, one in five firms would have to shed staff if they were forced to pay into employees' pensions.

The government, however, has conceded measures are required to plug the UK's pensions black hole. It is estimated that around 12 million people are not saving enough for their retirement.

The Pensions Commission is currently investigating ways of improving the pensions system. As well as forcing people to save, options include increasing taxes and raising the retirement age.

Following the publication of the commission's final report in November, the government is expected to make a decision within two years.

Speaking on BBC TV's The Politics Show, work and pensions secretary David Blunkett said: "We have a responsibility to make sure there is sufficient for people to live on.

"Whilst the evidence is that good information [and] education awareness is vital...information is not enough."