The challenge for the Government's pension reforms is whether they rebuild trust in the industry.
The pension changes announced in the Budget yesterday are a risk and based on "highly uncertain assumptions", according to a think tank.
Critics warn the major changes to retirement savings could leave pensioners short if they don't make the right decisions.
The pensions minister has outlined new caps on pension industry earnings that he says "will transfer £200 million" from providers' profits into "the pockets of savers".
Speaking in the House of Commons, Steve Webb announced plans to cap charges on workplace pensions at 0.75% of the funds being managed - the toughest of the options being considered.
"We are going to put charges in a vice and we will tighten the pressure year-after-year," Mr Webb said.
The cap will apply from April 2015, he said, and will include company pension schemes provided through automatic enrolment.
The move follows far-reaching pension reforms which were unveiled in George Osborne's Budget last week.
The changes announced by Chancellor George in last week's Budget mean that from today:
- The size of the total pension savings that can be drawn down entirely and taken as a lump sum rises to £30,000, without incurring a 55% tax charge.
- Previously, someone with a £30,000 pot would have had to pay taxes and charges of £21,000 if they wished to take this as a lump sum, but now they will pay £4,500, leaving them £16,500 extra.
- The size of a small pot that can be taken as a lump sum, regardless of total pension wealth, is increased five-fold to £10,000.
- The minimum yearly income that is required to access pension savings flexibly is cut from £20,000 to £12,000.
The first phase of the Government's pensions revolution has come into force, giving thousands of people greater freedom over how they use their retirement savings.
The shake-up means that around 400,000 people will be able to access their pension savings in a more flexible way in the coming financial year.
The Prime Minister has defended the controversial poster which said Budget help for bingo players and the price of beer were "to help hardworking people do more of the things they enjoy".
Speaking to ITV News Deputy Political Editor Chris Ship, Mr Cameron said: "I didn't see the poster myself....I think actually people have been very patronising to say that we shouldn't help bingo and that we shouldn't make sure that responsible drinkers can afford a pint in the pub."
David Cameron has hinted that protecting benefits for wealthy pensioners would go into the Conservatives' next manifesto.
The Prime Minister said not giving benefits, such as winter fuel allowances, bus passes and cold weather payments, to top-rate taxpayers would save only "a tiny amount".
Speaking to Saga members in Peacehaven, near Brighton, Cameron said that cutting the benefits would also "introduce another complexity into the system".
He told the audience: "We will set our policy for the next Parliament at the next election. I don't want to pre-judge that.
"But the only thing I would say is that people think you save lots of money by not giving these benefits to upper-rate, top-rate taxpayers."
David Cameron believes "it is right to give people greater choice" when it comes to their retirement, the Prime Minister's official spokesman said.
He told a Westminster media briefing: "These are people who have been saving for many years in defined contribution schemes and we trust them in the decisions they make.
"It's not for me to give advice. It is about ensuring that good advice is available to everyone."
David Cameron told ITV News it was "very condescending" to suggest people who are given the opportunity to drawdown money from their pensions will spend it all at once.
The Prime Minister told ITV News Deputy Political Editor Chris Ship: "I think it is a very condescending view to say to people who've worked hard, who've saved, 'We don't trust you because we think you're going to blow all that money you saved on one item or one holiday'.
"I simply don't believe people will do that ... These people who've worked hard, who've saved, they've been thinking about their retirement and it's only fair to let them spend their money in their retirement as they choose".
ITV News Deputy Political Editor Chris Ship, who is in the audience at David Cameron's PM Direct event, wrote on Twitter:
Hint of change on wealthy pensioner benefits? PM: Kept promise this Parliament-we make new pledges for next Parly but it saves "tiny amount"
David Cameron said giving people freedom with their pensions funds was "the right thing to do" and that this was "the right time to do it".
The Prime Minister told an event in Brighton that he doesn't believe people are "fundamentally irresponsible" or that they will spending all the money they draw down from their pension.