The Government coffers will be boosted by £3.5 billion, as a result of the changes made to pensions in April 2011 and it doesn’t stop there.

Labour has set its sights on higher rate pension tax relief declaring that too much of government funds in this area – two thirds of £20 billion – goes to high earners.

However we need to remember that a large number who get higher rate tax relief on their contributions also pay higher rate income tax on their income in retirement.

Over recent months private pensions have come under pressure as a result of depressed stock markets and falling annuity rates. The gilt yield used for calculating income rates for drawdown stands at 2.75 per cent - the lowest it has ever been since the introduction of this method of taking income some 15 years ago.

The knock on effect for annuity rates is that a 65-year-old man with a £100,000 pension fund would get an income of just £6,360 today compared with the £15,490 he would have received 20 years ago.

This would leave us to believe that individuals approaching retirement would shop around for the best annuity rate but only 40 per cent search elsewhere for a better reward for their pension funds.

However this figure should increase as new rules coming in will prevent insurers from including annuity purchase forms in their pre-retirement packs that send out a message that you have to buy your income with the company with whom you have accrued your fund.

Instead these forms are being replaced by a pensions passport scheme that will allow the individual to transfer their retirement benefits to another provider and buy their income.

Up until retirement it is important to take an interest in your pension schemes. The two thirds pension as a result of 40 years service in a final salary scheme is becoming something of the past. For individuals in money purchase schemes approaching retirement they should consider reducing exposure to equities to avoid any last minute shocks and consider “lifestyle” funds that makes the switch from equities to bonds, gilts and cash gradually.

Look out those old pensions, many of us may have several employers during a 40 year working life. The number of times one moves home may mean it is worth tracking down pensions lost as new addresses are not known.