“We don’t have a view on the firm number that the threshold should be, but it does seem quite odd that the number wasn’t indexed because it is increasingly capturing more and more people,” Ms Turner said.

As part of a review into the threshold amount, the government also needs to consider how the system can better deal with unintended multiple accounts, the director added.

“I’m sure a number of people are captured inappropriately where they do have multiple accounts, perhaps multiple jobs, multiple contracts, and they would sit above the threshold if it was accumulated into the one fund. So, there’s a couple of elements to this and we would very much welcome a conversation about lifting the threshold.”