The fund management and insurance industries warned today that they would be severely hit by reforms unveiled this morning by the Pensions Commission. Among key proposals, it calls for a new pensions savings scheme and the retirement age to be pushed out to 68 by 2050.

Donald Duval senior consultant at Aon Consulting said: "I do not believe the National Pension Savings System is workable. It would destroy the existing savings system and expose the government to the risk of being involved in the selection of the wrong managers."