Mr Grayling told the Financial Times that unless the government structures the scheme in the correct way, there may be some people who save for their retirement using the accounts “who will not derive any benefit, or only a marginal benefit”.

There is a risk that a large number of people will choose to opt out of the scheme and so the initiative will “not take off” and no progress will have been made.

However, in response to the new pensions bill announced in Tuesday’s Queen’s Speech, National Association of Pension Funds chief executive Joanne Segars said that the launch of personal accounts would have a “far reaching effect” on millions of people.

“For years to come, personal accounts should provide an effective way of helping low to medium-income employees who do not currently have access to a good workplace pension,” she remarked.

Find out more about the retirement planning

© Adfero Ltd