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Means-testing will not be scrapped in spite of a consultation programme as it is already clear the government considers this option too expensive, according to Margaret Robertson, public relations manager for Aegon UK..

Referring to the recent concerns expressed around means-testing, Ms Robertson said it was clear from the government's rejection of various ideas that it had zero intention of scrapping means-testing.

She said: "The Penions Policy Institute has looked into alternatives to mitigate the impact of means-testing including not bringing the first £12 a week into the equation. This has already been dismissed by the government as far too expensive, which is worrying when you consider it should be comparatively cheap. If they will not examine that idea then there is zero chance of them actually scrapping means-testing like the Lib Dems and Tories want."

Ms Robertson said, if this turned out to be the case, she was very concerned about the actual viability of personal accounts as the government had been given some respite by promising to look into the matter.

She said: "If the government turns round and tries to keep means-testing by restricting auto-enrolment to 55 and under, then parties such as the Tories could withdraw their support. This would be a nightmare as it would stall finding a solution to the pensions crisis."

A spokesman for the department of work and pensions said they were examining the issue of means-testing and more people would be better off enrolled into personal accounts than if they had no savings at all.

He said: "Personal accounts will benefit more people than it hinders and people should know this."

He would not comment on plans to restrict auto-enrolment or government plans concerning means-testing.

Adam Steventon, senior policy analyst for the Pensions Policy Institute, said scrapping means-testing would prove expensive, however, it continued to examine other ways to mitigate the current system.

He said: "This has been debated and we have ongoing research into this area. Another thing we are examining is the matter of trivial commutation, having savings as a lump sum instead of income, and extending the limits on this.

"This extension of lump sum limits would take more people out of the means testing band however there is an ongoing discussion about whether we should be encouraging lump sums in favour of annuities.

"Means testing and its impact is not likely to go away under the new system."