These were something like Individual Retirement Accounts in the United States. Anyone opting for a Personal Pension is entitled to a rebate from their National Insurance Contributions. This is payable directly into their Personal Pension, so it can only be used to fund a pension, not spent on personal consumption. Five and a half million people have taken out approved Personal Pensions. These are in addition to more than eight million who are members of opted out occupational pension funds.
People are, of course, free to put more into their private pensions than just the rebate.
Both were major scandals, but it is important to recognize that neither scandal had anything directly to do with the right to opt out of the state system. Moreover, in both cases none of the potential victims will actually lose a penny. It usually would be better to remain in a company fund, because employers usually pay in an extra contribution on top of the employee's contribution. Companies which missold pensions in this way broke the rules that require salesmen to give the best advice, so they are required to reinstate members back into their company fund. Significantly, this misselling became possible only when the government stopped companies from making membership in their company pension fund a condition of employment.