The Coalition Government has officially announced its plan to introduce Dutch-style collective private pension schemes into the UK.
The proposal was unveiled during the Queen's speech during the state opening of parliament.
"My government's pension reforms will also allow for innovation in the private pensions market to give greater control to employees," The Queen said.
Ministers have argued that collective defined contribution (CDC) funds, rather than individual ones, will mean costs are lower for workers and employers and the investment devices will offer less risk.
The government also said the move needed to encourage new Defined Ambition pensions, in the middle space between Defined Contribution and Defined Benefit pensions that share more of the risk between parties.
Claire Carey, a partner at pensions law firm Sackers & Partners, told IBTimes UK that the success of the initiative will come down to appetite.
"The [schemes] work in places like Holland because they've got the benefits of scale because they are quite large industry-wide arrangements.
"If there is appetite amongst employers [in the UK], I think it will be a case of how to set those [schemes] up."
But critics of the proposal have raised questions about the pension bill's viability.
Tom McPhail, Head of Pensions Research at Hargreaves Lansdown, claimed CDC schemes are unlikely to revolutionise pension provision in the UK.
"We used to have collectivised pensions in the UK, called With Profits funds," McPhail argued.
"However investors now shun these investments because of their complexity, lack of transparency, and poor management."
The pension expert also claimed that CDC schemes are unfair.
"With the best will and skill in the world actuaries won't be able to distribute money fairly between generations, between social groups, and between individuals," McPhail explained.
"In particular, CDC schemes will benefit the affluent, who tend to live longer than low earning workers."