Speaking at the launch of the UK Pensions Policy Institute's (PPI) report looking at the government's pensions proposals, the Liberal Democrat's spokesman has warned that major questions remain over how auto-enrolment to a pensions scheme would work.

IFAonline quotes David Laws as saying that there is major doubt as to how many people would choose to opt out of the automatic personal account system – a fear shared by the PPI. Auto-enrolment is the key element of a national pensions savings scheme, the reform model adopted by government in light of the Pensions Commission’s report last year.

There is a real risk of 20% – 75% of households, maybe even more, who may decide it is not in their financial interests to save into personal accounts, Mr Laws is quoted as saying.

The government proposals fail to simplify our ludicrously complex pensions system and do not offer adequate funding for a decent state pension for all, he added.