David Cameron has taken the unprecedented step of bringing an independent financial campaigner into his cabinet this week, suggesting that the new Conservative government will be open to yet more radical reforms of pensions and savings over the next five years.

David Cameron has taken the unprecedented step of bringing an independent financial campaigner into his cabinet this week, suggesting that the new Conservative government will be open to yet more radical reforms of pensions and savings over the next five years.

Dr Ros Altmann, who was made pensions minister on Monday, has long been an outspoken advocate for savers' rights, calling for better access to financial advice as well as a more transparent and flexible pensions system.

Now the former director general of Saga has been given a free hand to shake up an industry already reeling from the pension freedoms granted to consumers in George Osborne's Budget last year.

Her policies may include establishing a Care Isa, allowing tax relief and employer contributions to go towards student debt repayments, funnelling workers' pay rises into pensions and taxing old age benefits to make the system fairer.

Dr Altmann replaces the Liberal Democrat Steve Webb, one of the longest serving pension ministers in modern times who instigated sweeping changes to the sector but lost his seat in Gloucestershire last week.

The surprise appointment wrongfooted many commentators, who were reporting on Monday that the pensions brief would go to David Gauke, financial secretary to the Treasury.

Nonetheless, experts welcomed the move, citing Dr Altmann's experience and insights into the consumer mindset.

Phil Loney, chief executive of Royal London, told the Herald: "One of the concerns about the Conservatives that the industry would have had is that it was hard to spot too many people with a background in pensions. Ros's appointment is great - a consumer champion will bring a fresh perspective."

However, Nick Ayton, managing director at GenLife, warned: "Ros will have her work cut out to ensure the pensions revolution that Steve Webb begun does not hit the buffers and that consumers are protected from high charges from legacy providers".

Malcolm McLean, senior consultant at Barnett Waddingham, added: "Having an unelected new peer as the pension minister is bound to attract criticism from some quarters and Ros will have to accept that her position within Government will not allow her the luxury of claiming to be an independent consumer champion and criticising Conservative policies from the outside."

An economist by training, Dr Altmann had previously been promised the newly created role of minister for consumer protection and financial education in the event of a Tory win at the ballot box.

It is understood that Dr Altmann will hold onto that remit at the Department for Work and Pensions after pledging to conduct a "financial fairness" review in the weeks leading up to the election.

Such a review could lead to a charge cap on pensions and an expansion of the PensionWise service so that workers of all ages can access so-called "financial guidance" (the free but less personalised alternative to regulated financial advice).

Mr Loney said he hoped that the government would go further by introducing "cheap and cheerful" financial advice for all, potentially by merging the Pensions Advisory Service and the much-derided Money Advice Service into one body.

He was also joined by Alan Higham, retirement director at Fidelity Worldwide Investment, in calling for a re-think on contribution requirements for workers automatically enrolled into workplace pensions. Mr Higham said there now needs to be a review of the 8 per cent minimum rate due to be enforced from 2018, with Mr Loney arguing that only a deduction of 15 per cent from workers' pay packets will "properly provide" for later life.

Dr Altmann has herself described the minimum contribution rate as "wholly insufficient", adding: "There is a danger that workers will be lulled into a false sense of security, believing that their pension is 'sorted' because they are contributing under auto-enrolment."

Writing in 2013, she argued that workers should be encouraged to put future pay rises into pension schemes as part of a SaveMoreTomorrow scheme, which she said had been used successfully in other countries.

So what else might we expect from the new minister? Dr Altmann is likely to see through plans for consumers to re-sell their annuities, despite resistance from the industry, and push for even more explicit risk warnings to be attached to these products so consumers avoid getting a poor deal.

Prior to the Autumn Statement, Dr Altmann wrote: "The Financial Conduct Authority should ban hidden commission, and require anyone selling or facilitating annuity sales to declare upfront how much money the customer will pay and whether independent advice is being given."

She may also look into the possible transfer of the generous tax relief and employer contributions offered with workplace pensions into the student loan system, allowing young workers to pay down their university debts quicker.

Furthermore, the new minister may argue for reassessing controversial benefits for older people, such as the Winter Fuel Allowance, having previously said that all 20 payments on offer should be rolled into the state pension and made taxable.

The Care Isa could also become a reality under the new government, with ministers said to be interested in Dr Altmann's idea for a tax-free savings account aimed at encouraging people to save for future care needs.

Dr Altmann said on Thursday: " My priorities are clear: to strengthen British pensions, improve later life incomes, and protect the pensioners of today and tomorrow."