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The future of personals accounts looks uncertain, according to Nigel Waterson, shadow minister for pensions for the Conservatives, who said the government's proposed pension scheme will not provide adequately for workers in retirement.

Mr Waterson added that means testing, as currently structured, will threaten attempts to get more people to save for themselves.

In a further blow to the government's attempts to boost national pension savings, Nigel Waterson admitted the Conservatives was only supporting the personal accounts proposals as the government had caved in and agreed to examine means testing.

He said: "The government has finally given in to pressure and is now giving this important issue due attention. We await their conclusions with interest."

Mr Waterson did, however, acknowledge this may lead to the exclusion of certain groups approaching retirement, the very age group targeted by this initiative.

Referring to the general election in 2010, Mr Waterson said: "This is a tricky situation and it must be remembered this is the only option open to us now so we have to try and work with it. We may be the ones tasked with dealing with this in two years."

The shadow minister remained tight lipped on whether this system would be implemented in the event of a Tory victory although he admitted the savings rate of 8 per cent was "unworkable" and "unrealistic."

He said: "Tackling the issues of longevity is an ongoing concern as the savings rate quoted cannot provide for 30 years' of life."

Mr Waterson said the government must look at maintaining conditional indexation so as to encourage employers to stay in defined benefits business, stating it was "essential" these schemes remained open.

In last week's Financial Adviser, Ros Altmann called for a system which allowed people to work part-time into their sixties and seventies, a proposal which received support from Mr Waterson.

He said: "Many people would be well-advised to opt out of personal accounts including those with large debts and women who have had a chequered work life.

"However, this is not advertised by providers or employers as they are all too scared of being sued."

A spokesman for the department for work and pensions said the scheme had a clear deadline and they were currently examining the issues surrounding means testing.

He said: "We have already stated the system will be in place by 2012. Personal accounts will provide benefits to those on a lower income, encouraging people to save.

"Matters of detail are being firmed up and will be announced in due course."