MPs on the Public Accounts Committee have attacked the “shameful shambles” which led to an estimated 134,000 pensions, mostly women, being underpaid over £1bn in State Pension entitlement.

National Financial Planning group Continuum has predicted that annuities may see a return to favour as advisers try to cope with the impact of soaring inflation on their clients.

It said that all advisers, administrators, trustees and providers should take responsibility for protecting pension savers by joining its pledge to combat pension scams.

A lack of advice for pension savers risks destroying the flexibilities offered by the Pension Freedoms, according to a new report from MPs on the Work and Pensions Select Committee.