Employers in Birmingham and the West Midlands are the most likely in the country to close their defined benefit pension schemes.
The gloomy picture is highlighted in Alexander Forbes Financial Services' (AFFS) first annual Pension Confidence Survey, which will be launched at AFFS's autumn seminar in Birmingham in November 2005.
Fifty six per cent of regional employers do not expect to provide any staff or executives with defined benefit pension provision within the next five years, which compares badly with national figures of 43 per cent.
In contrast only 31 per cent per cent of employers in Manchester expect to close their defined benefit schemes.
Regional employers are also the most pessimistic in the country about government steps to improve pension security.
Just 29 per cent of employers believe the provisions of the Pensions Act 2004, including the introduction of the Pension Protection Fund have greatly improved the pension security for their scheme members.
Nationally 43 per cent of employers and nearly 50 per cent of employers in Greater London believe the Government's steps have improved pension security.
Robert MacGregor, corporate development director at AFFS, said: "We're probably seeing the MG Rover effect making many employers in Birmingham pessimistic about the outlook for defined benefit schemes in the region.
"Only 12 per cent of local employers believe that their members are more confident about their pensions following the government's new pensions legislation which compares badly with national figures of 20 per cent which itself is very low.
"We strongly believe that there is an excellent future for company sponsored pension provision in the West Midlands and we are holding a seminar in November to advise local companies on the steps they can take to keep their pension promises to employees.
"There is little doubt that local businesses want to provide a quality pension for their staff with almost 70 per cent of West Midlands' employers telling us that they believe their company has a responsibility to help their employees with long term pension provision, but that increased costs and regulation no longer make it viable to provide a defined benefit pension scheme."
The results of the Pension Confidence Survey will be released at AFFS's autumn pension seminar series in November 2005. The seminars will cover issues for employers endeavouring to keep their pension promises and pension planning for executives. The Birmingham seminar will be held on November 16.