James Purnell, Minister for Pensions Reform, has revealed the "frankly scary numbers" in a retirement survey carried out by Which? support the case for personal accounts.
The government needs to confirm whether proposed personal accounts will be classed as an occupational scheme, and if so what level of consumer protection will be built into the scheme.
James Purnell's attempts to justify means-testing have been welcomed by Steve Bee, as he says it proves pension credit is a 40% tax on savers.
The future of pensions will not be about people voluntarily saving in what is "basically privatised welfare", says Steve Bee.
The pension White Paper has been described as a major reform to match the Beveridge reforms of the 20th century, but I don't buy that.
The five most influential people in the retail financial services industry are Steve Bee, Stewart Ritchie, Ray Boulger, Neil Woodford and Nick Kirwan, according to a survey of financial advisers.
Rumours circulating in the pensions space suggest the DWP may put out a questionnaire in order to properly establish just how much money is required to fund the Financial Assistance Scheme.
Pensions expert Steve Bee believes there will be four ways of protecting existing pension pots from new retrospective tax rules, set to come into force by April 2006.