Pensions campaigners warned today that the looming auto-enrolment of millions of workers into retirement schemes will boost the City but won't end poverty in old age.
The scheme being phased in from October 1 will automatically sign up employees to their employer's existing pension scheme or an alternative scheme chosen by their employer.
It will apply to those aged 22 or over who have been in employment for three months and earn more than £8,105 a year.
Ministers were quick to talk up the scheme, which will be phased in over five years - starting with Britain's biggest companies.
They claim it will top up a low state pension and put an end to poverty in retirement.
Pensions Minister Steve Webb (pictured) told the Observer today: "If we can get 7.5 million people in an employer contributory scheme, that will be incredible."
But critics argue it will not deal with pensioner poverty.
Pensions expert Ros Altmann said: "Some are better with Isas than pensions, some will lose out in the state pension means -ests and some may be better saving to buy a home or pay off their student loan."
And Communist Party general secretary Rob Griffiths told the Star: "This scheme is no substitute for either a decent standard state pension or for a second state pension scheme to which the state, employees and employers all contribute.
"A secure decent state pension should be backdated to restore its full value.
"A second state pension should be funded from the state, employers and employees and should be run by the state, rather than the money handed over to the gamblers and mis-sellers in the City who have already lost billions of workers' money."