Some UK pension experts have criticised the cost assumptions in David Pitt-Watson’s report and say the economies of scale that apply to industry-wide collective DC schemes could equally apply to very large DC plans here.

John Lawson, head of pensions policy at Standard Life, said its DC scheme members pay an average annual charge of 55 basis points. He added: "Some schemes could be paying 25 bps and others could be paying 100 bps."