A pensions time-bomb is ticking under the British tax-payer. A recent report by the Association of British Insurers shows that half of the working population (over 13 million people) are either not saving in a pension at all, or are not saving enough.

I have consistently raised concerns about the state of both public and private sector pensions since before I became an MP. The declining stock market this year will have played havoc with funded pension schemes, many of which are now likely to be sitting on huge unfunded liabilities. These may take months to become fully apparent, but years to sort out.

Gordon Brown compounded the problem by raiding private sector pensions to the tune of £5bn a year since 1998. By so undermining the savings culture in this country, the Government created a pensions environment where saving for retirement has mostly made sense for only the richest half of the population.

Those turning 75 who have saved into a pension are being compelled to buy annuities based on today's historically low interest rates, which will slash their pension income for the rest of their lives. Some 20 per cent of the UK workforce is enrolled in public sector final salary schemes with "defined benefits". The Confederation of British Industry this week warned that the cost of looking after state employees in old age works out at £32,000 per taxpayer or £1 trillion overall. But it is difficult to get a clear picture of the scale of public sector pensions debt because the government has not released full figures since March 2006. Conservatives have long called for more transparency in public sector pensions so taxpayers fully understand the true costs. Public sector workers could also see just how valuable their retirement benefits are. An incoming Conservative Government would set up an independent Office for Budget Responsibility to conduct a full review.