Government puts defined ambition pensions on ice

"Once established, we believe they could grow rapidly in the UK as their advantages are demonstrated both to employees and to employers. 

"It is vital this is taken forward in the interests of DC contributors as the main beneficiaries of current DC arrangements are the 'pensions industry', and CDC will intensify competitive pressure driving increased efficiency and value for money for members in DC schemes generally."

For Mike Lacey, partner at Berkshire-based financial adviser firm Bowman Pension Consulting, the success of auto-enrolment means that workers are more aware of pensions than they have been for some years.

He said: "So, the introduction of some kind of shared ambition pension would not be a huge leap in the dark for them.

"We can also look to the Dutch experience – they are some years ahead of us here and shared ambition appears to be working well for them."