Alterations to the pensions bill 2007 could result in reduced flexibility and increased costs for protected rights pensions holders, according to Standard Life.

The life assurance firm states proposed changes mean that married people, or those in civil partnerships, will be required to buy a 50 per cent partner pension with their protected rights fund following the 2012 abolition of money purchase contracting-out, Citywire reports.

This will result in such pension holders not being able to combine funds into one annuity, thereby resulting in the incursion of two annuity administration expenses.

John Lawson, head of pensions policy at Standard Life, said: "Providers and advisers will still have to explain the technical differences to customers who find pensions difficult enough without this added complexity.

"The government is supposed to be following a de-regulatory agenda, but this is the complete opposite – unnecessary red tape."

Earlier this year Standard Life detailed changes to Alternatively Secured Pensions, which it said would result in significant tax charges following a member's death, the requirement to take a minimum income and an increase in the maximum income to 90 per cent, an increase of 20 per cent.