The PPI’s report finds that some individuals may be at risk of receiving only slightly more, or even less, than they put into their funds.

PPI director Nick Cleal explains: “A combination of career breaks and low earnings can increase the risk of finding personal accounts unsuitable.”

The news was good for young people, he said, who are “likely to get good effective rates of return if they contribute to their personal account throughout their working lives”.

But “people in their forties and fifties today may get less value”, he added.

He called for “very clear information” to be provided to enable all pension savers to assess whether they were suited to the scheme – which requires consumers to actively opt-out.

The new system of pensions accounts will be rolled out from 2012 under current plans, and UK employees will be auto-enrolled.

For more information about personal pensions, click here.

© Adfero Ltd