Although there may still be issues to address, the new personal accounts scheme could help millions of people to save for their retirement, it has been claimed.
Des Hamilton, technical director for The Pensions Advisory Service, said that the initiative is aimed at those who do not have a pension plan or scheme open to them.
"It will bring a lot of people into pensions - millions of people - who otherwise wouldn't have been making any provisions for their retirement," he explained.
However, Mr Hamilton suggested that some people may encounter problems when it comes to means tested benefits and whether the personal accounts scheme will "simply replace" what they would receive from the state anyway.
According to the government, private pension saving is at its lowest level among people on moderate to low incomes.
It also highlighted that pension savings tend to be low among those in their 20s and 30s and women.
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