The government’s reforms for pension schemes are unlikely to make a difference in the wider scheme of things, it has been claimed.

Pensions expert Ros Altmann said private pensions are "crumbling before our eyes" and are being undermined by private savings.

"The government’s reforms are like rearranging the deck chairs on the Titanic: our system is sinking and tweaking bits of it here and there will not save it," she suggested.

Employers have been relied upon to bridge the gap between the "inadequate state pension" and a decent retirement income since the 1980s when personal plans came into effect, Dr Altmann added.

PricewaterhouseCoopers recently revealed that 96 per cent of companies are planning changes to their workplace pension schemes due to concerns about risk and the need to reduce costs.

Over three-quarters (77 per cent) of those questioned said that the Budget’s pensions tax proposals have further reduced their motivation to provide workplace pensions.

Furthermore, 96 per cent of all employers also now think defined benefit pensions are unsustainable, with three-quarters considering ceasing all future accrual for existing employees.