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Ms May, giving the keynote address at the FT Intermediary Forum, told delegates a Conservative government would review Personal Accounts and look favourably at a UK version of the Kiwi saver and US 401(K) schemes.

She said if the Conservative Party were to form the next government, it would review the scheme "as a matter of urgency".

She added: "Many people could be encouraged to save in Personal Accounts but could find it was not worth it because of means-testing."

Ms May criticised the government for not looking at early voluntary adoption of the accounts to help employers plan for the process of automatic enrolment.

She also told the forum that a Conservative government would end the obligation to buy an annuity at the age of 75.

But the proposal was slammed by Angela Eagle, the minister for pensions and the ageing society.

Ms Eagle dismissed the remarks as "rubbish", adding Ms May's criticisms over means-testing were also unwarranted.

Ms Eagle said: "With the greatest of respect, these comments are rubbish. We have done the research on this. From our modelling, about 95 per cent of people enrolled in Personal Accounts will be better off and will not be subject to means-testing."

Although this means about 5 per cent of people might be means-tested, this is a relatively low figure, Ms Eagle said.

She said it had been estimated that about 70 per cent of people enrolled in the scheme will get double what they put in when they retire.

She said: "We cannot guarantee everyone will be better off, but the vast majority will see great benefits."

Ms Eagle also said Ms May's suggestions of an early voluntary adoption of the scheme were not practical.

Ms May said: "I do not think it is right for the government to actively enrol people in a scheme that will not be regulated until 2012. It is a protection issue."

However, Ms Eagle said the Personal Accounts Delivery Authority would be undertaking early modelling of the scheme in 2011 and was actively ironing out any practical issues with automatic enrolment before 2012.

Ms Eagle said it would be disappointing if people actively opted out or defaulted on Personal Accounts when they became available.

She said: "Parliament has legislated that people can opt out of the scheme if they wish. But it is not rational to opt out of a scheme where a person's contribution is matched by the employer and government."

Ms Eagle said Personal Accounts would go some way in meeting the nation's savings gap, where about 60 per cent of private sector workers currently have no access to a pension.

Chris Cummings, director general of the Association of IFAs, agreed with Ms May that the accounts should see early voluntary adoption.

For more on the FT Intermediary Forum, turn to page 2.