The Queen said innovation in the private pension market would be introduced alongside reforms which will remove the effective need for retirees to buy an annuity when they retire.

The introduction of collective pension schemes, similar to those in operation in the Netherlands, allows thousands of workers to enrol in one scheme giving greater economies of scale, lower costs and the potential for greater returns.

The monarch also said the government intended to continue reducing the county’s deficit and cut taxes by increasing the personal allowance.

There will also be a programme of deregulation and penalties for firms that fail to pay workers the minimum wage.

TISA operations director Carol Knight commented: “We applaud the increased focus on savings for retirement. Giving people more choice in how they save, complementing the recently announced increased freedoms regarding the options at retirement, is a positive step towards ensuring that people build up a pension pot sufficient to meet their needs.

“We look forward to continuing to work with government to make their proposals work to help deliver more choice and more competition. Together, we believe that will be good for people saving for retirement, and good for saving.”