The government has published its pensions white paper, the biggest shake-up of the system for 50 years.

The state pension will be re-linked in line with earnings rather than prices, although not until 2012.

Pensions secretary John Hutton also promised the proposals will be fairer to those, mostly women, who take time out from their careers to care for ill family members or children.

The change will be paid for through rises in the state pension age, which will go up in increments from 65 to 66 in 2024 and to 68 by 2044 as life expectancy rises.

And a version of Lord Turner's 'opt out' low cost national pensions savings scheme (NPSS) plan will be introduced to help encourage workers to put money aside.

Stakeholder Response: ACA

ACA chairman Adrian Waddingham said: "We welcome the announcement that schemes will be allowed to convert guaranteed minimum pension rights into scheme benefits, offering the actuarial equivalent value in exchange.

"However, we remain worried about the private pension reforms proposed. We accept NPSS could widen pension coverage, particularly in smaller firms.

"But, we remain very concerned that the volatility in pension outcomes that will be delivered by NPSS may sour its progress, due to the 100 per cent investment and longevity risk being taken on by members under such a scheme.

"This volatility is particularly dangerous for those approaching retirement on lower earnings."

Stakeholder Response: Which?

Which? chief executive Peter Vicary-Smith said: "Which? is delighted that the government has taken a principled stance in support of the Turner NPSS proposals.

"It has resisted strong industry pressure in showing its commitment to a low cost NPSS.

"It is going down the only path that will deliver a long-term solution to Britain's pensions crisis - putting the interests of consumers first.

"We look forward to working with the government and all political parties to ensure the smooth and effective implementation of NPSS."

Stakeholder Response: Age Concern

Gordon Lishman, Age Concern's director general, said: "The government has hit the target but missed the bulls eye. This white paper has delivered a win for future pensioners but is off the mark for today's.

"Women and carers are the clear winners today. For too long, women have been penalised by an outdated pensions system, designed for the world of the 1940s not the 21st century.

"We are absolutely delighted that the government has finally listened to our calls for a fair deal for women by proposing a more flexible carer's credit and a reduction in the number of years needed for a full state pension.

"These changes should also be introduced retrospectively to those already retired with incomplete records.

"We also welcome the commitment to set up a new national pensions saving scheme, which is essential in making saving pay for people on low and modest incomes.

"If state pension age is going to rise in order to fund a better state pension, we need to see a transformation in the workplace to enable older workers to continue to work if they want to, as well as targeted programmes to support those who cannot work.

"The government must ensure that inequalities between rich and poor are not exacerbated by this reform.

"But this has to be a settlement for all generations. Unless the government intervenes quickly, the real value of the basic state pension will fall to a dismal £72 by 2012.

"Today's pensioners will have to wait a long time to see any gains from this new settlement.

"At the very least, the government should make the link between Pension Credit and earnings statutory so that current pensioners don't get poorer the longer they live.

"We now need an ongoing Pensions Commission which can advise government on the success of the new measures and any new steps which will be needed to ensure we can all look forward to a retirement free of poverty."

Stakeholder Response: Amicus

Amicus general secretary Derek Simpson said: "The government's pensions white paper represents a victory for working people.

"Amicus has led the campaign for pensions justice and the government has listened to many of our demands.

"There is still more work to be done to ensure compulsory pensions contributions are stepped up over time to stop employers levelling down their contributions.

"The union will continue to campaign to ensure all employee's pensions should be protected in the event of their employer becoming insolvent."

Stakeholder Response: Chartered Institute of Personnel and Development

Charles Cotton, CIPD pensions adviser, said: "People are becomingly increasingly savvy about the package of rewards available to them from different employers.

"Good employers already offer decent pensions but poor financial literacy among the general public means that bad employers have been able to get away with offering nothing for far too long.

"The proposed NPSS will level the playing field, but our research shatters the myth that the scheme will drag down the level of existing employer pension contributions.

"It would make no sense for employers competing to attract staff to cut pensions to minimum levels.

"The recognition enshrined in the NPSS proposals that employees should make additional pensions contributions unless they explicitly opt-out is also a welcome new development.

"As we live longer, and our expectations of retirement rise, it is essential that we all recognise that we have some responsibility for providing for our own retirements.

"The proposed employer contribution subsidy for smaller employers is welcome, however, government should also look to compensate employers for this compulsory contribution by reducing the financial burden of red tape in other areas."

"An ageing population combined with enduring skills shortages makes it illogical for employers to be able to retire people purely on the basis of their birth date.

"Many people want to keep working beyond the age of 65. With the state pension age now certain to rise incrementally, it is barmy that employers will still be able to get rid of people on the basis of age rather than performance."

Stakeholder Response: Equal Opportunities Commission

Jenny Watson, EOC chair, said: "Addressing the scandal of women's pensions is at the heart of today's white paper.

"These proposals are a welcome step towards putting inequalities right but the devil will lie in the detail.

"The new system must lift women out of poverty; enabling even the poorest to save on top of the basic state pension to gain an adequate income in retirement.

"We strongly welcome the white paper's greater recognition of the contribution made by parents and carers and the new link to earnings.

"This will significantly increase the numbers of younger women qualifying for a full basic state pension, delivering more income in retirement, making it easier for them to plan ahead and save for themselves.

"The second state pension and new National Pensions Savings Scheme will help too, particularly for those who currently find it difficult to save, such as parents and carers who are often on low, and sometimes no, income.

"But we are concerned that older women might still not qualify for a full basic state pension in their own right, making them dependent on pensions credit.

"Many may lose the benefit from their hard earned savings if they claim pensions credit.

"We are pleased that the secretary of state has agreed to carry out a thorough assessment of the impact of the proposals on all women and men.

"This will give us confidence that the scandal of women's pension provision is truly a thing of the past."

Stakeholder Response: FSB

Mike Cherry, FSB national pensions spokesman, said: "Everybody recognises the need to tackle the future of pensions and the government has done well to grasp the nettle on this issue.

"The government's stated aim has been for individuals to take responsibility for their own futures and we hope this is reflected in the final settlement.

"Our discussions at Number 10 Downing Street today saw all the business organisations united in their concern about the impact the proposals would have on small businesses and their employees.

"Good communication and simplicity is the key to making this work.

"We welcome the time the government is giving to this debate and look forward to being fully involved in representing the views of small businesses."

Stakeholder Response: GMB

GMB general secretary Paul Kenny said: "This white paper could mark the foundation of a Labour legacy matched only by the likes of the NHS and the welfare state in the public mind.

"Sadly at the moment there seem to be too many gaps, too many delays and too much caution. The GMB will continue to campaign for sustainable reform with tangible results.

"The UK needs radical pension reform that forces business to pay its share.

"Increased funding for the FAS should be widely welcomed but everyone should remember that when the government asked companies to contribute they were met with sight of business leaders washing their hands of responsibility.

"Individuals need to be encouraged towards active participation not shepherded towards means testing.

"The government have made a good step towards this by accepting the theory of the NPSS but there are a lot of loose ends that will need to be trimmed.

"There can be no justification for increasing the state pension age so soon when health inequalities in our country are so extreme. How can anyone justify forcing workers to work for longer because the rich retire early and live longer?"

Stakeholder Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, said: "While there is a lot to welcome in the white paper, little is said about how the government intends to tackle the disgraceful levels of pensioner poverty in this country.

"Around two million older people are living life on the breadline, but today's proposals expect them to wait until 2012 before increases in the basic state pension get linked to earnings.

"By 2012, the state pension will be worth barely 14 per cent of average earnings, down from around 16 per cent today.

"If you're living life at the margins, this makes a big difference. Urgent action is needed now to lift older people out of real hardship.

"Instead of relying on intrusive and failing means-testing, ministers should take dignity in retirement seriously and increase the basic state pension immediately to at least £114 per week for a single pensioner and for this to be up-rated in line with earnings.

"Long-lasting pensions reform which benefits everyone should not be subject to a six year wait. It is affordable and sustainable to make the changes in pensions today.

"The UK languishes among the lowest spending nations in Europe when it comes to spending on pensions.

"The government that invested in our NHS can also do the right thing and tackle pensioner poverty now.

"The government has come a long way since November's Pensions Commission report in terms of accepting the need to finally put right our creaking pensions system.

"However, delaying the start of this urgent repair job for six years smacks of being on the right road, but in the wrong gear."

Stakeholder Response: Investment Management Association

Richard Saunders, chief executive of the Investment Management Association, said: "The white paper is a major step towards a pensions system that is fit for the 21st century.

"The government has signalled a clear preference for a single centrally-run National Pensions Saving Scheme.

"We strongly support this, and look forward to helping get the details right.

"The ideas we submitted following the Turner Report point the way to a simple, universal and workable scheme.

"We will now seek to work with the Department for Work and Pensions to make it a reality."

Stakeholder Response: Institute of Directors

Director general of the Institute of Directors Miles Templeman said: "The IoD welcomes parts of the white paper including the increase in the state pension age and re-establishing the earnings link.

"Worryingly, the pensions system looks as though it may be as complicated after the white paper as it was before.

"The government may have lost a real opportunity to simplify the system for the 21st century. We need to sweep away the complexity of the current system.

"We strongly oppose compulsion on employers. It will act as a tax on employment increasing the price of labour and reducing demand.

"There is simply no economic case for compulsory employer contributions. The government cannot continually offload social problems onto businesses and expect them to pay."

Stakeholder Response: Association of Chartered Certified Accountants

Allen Blewitt, chief executive of ACCA, said: "A consensus on pensions reform is long overdue and, given the scale of the problem facing us, the white paper makes a good start on taking the tough decisions which need to be made.

"The new national pensions saving scheme is in principle a good step.

"It is essential that more individuals are encouraged to start saving for their retirement and the soft compulsion approach endorsed by the government is a good one.

"But the proposal to require employers to contribute at least three per cent of their employees’ gross salary to the national savings scheme is potentially harmful and could have a detrimental effect on small businesses and employment in small firms.

"We welcome the government’s commitment to consulting with the business community on measures which could cushion the blow for small firms.

"The tough decisions must not be restricted to the private sector.

"We need to avoid creating a situation whereby those in the private sector have inferior pensions and later pension ages than those in the public sector.

"If the best pensions, and earlier retirement dates, are increasingly to be found in the public sector, this could have a knock-on effect on the choices young people and graduates make when it comes to career choices.

"The government must be careful to give a fair deal on pensions to all workers and must be mindful of this aspect of pension reform on the UK’s entrepreneurship culture.

"Pensions reform must also involve joined-up thinking which takes account of peoples’ ability to save in the real world.

"Many young people leaving higher education with student debts may have to spend several years paying those debts off before being in a position to save for a pension.

"At the same time they are faced with the dilemma of how to get a foot on the housing ladder. The reality of competing priorities must be taken fully on board."

Stakeholder Response: British In Vitro Diagnostics Association

Doris-Ann Williams, director general of the British In Vitro Diagnostics Association, said: "We welcome the new proposals for pensions outlined in the government's white paper.

"BIVDA represents 95 diagnostic companies, many of which are British SMEs or start up companies with very few staff.

"These companies in particular will benefit from government plans to make the state pension more generous, and to tie future increases to earnings rather than prices.

"The UK's diagnostics sector provides invaluable services to the NHS, as well as contributing to the UK's R&D capabilities.

"This white paper will help the industry to take better care of staff, and give employees in the diagnostic sector more security - this can only be to the advantage of the industry, the NHS and the economy as a whole."

Stakeholder Response: Islamic Relief