The action taken by the government on personal accounts has won the support of the Association of British Insurers (ABI).
The Association of British Insurers (ABI) has stated it is pleased with the government's decision not to have a higher contribution cap on personal accounts during their first year.
Calling the decision - which also does not include a facility to add lump sum contributions - a "victory for pension savers", the ABI asserts it will help to make sure that personal accounts complement existing private pensions, rather than competing with them.
"Enabling a higher first year limit, and the payment of lump sums into personal accounts, would potentially have damaged the existing pensions market and therefore hit the people who save in them," said Maggie Craig, director of life and savings at the ABI.
She added: "This is a good result for the millions of current and future savers in private pensions."
The new rules for personal accounts will next be reviewed in 2017.
Earlier this week, the Pension Protection Fund (PPF) announced it had rescued a further four pension schemes, bringing the current total up to 61.
The fund was set up to pay compensation to people in the event of an insolvency related to their employer in which their pension scheme does not contain significant assets to cover PPF compensation levels.
Some 18,957 people are currently receiving compensation or are expecting to receive it in the future.
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