A White Paper is likely to be published this afternoon putting forward new plans for a long-awaited reform of the State Pension system.
The plans by the Department for Works and Pensions will see the basic and earnings-related pension systems replaced with a single-tier state pension of £144.
There are various different types of pension that pensioners can currently receive, such as the basic State Pension, second State Pension and graduated pensions, which makes it hard to accurately forecast future entitlements. It is hoped the proposed flat-rate pension will simplify this and mean people can make plans for their private pension savings.
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The new system will be introduced for new pensioners who reach state pension age in 2017 and have worked for 35 years, increased from 30 years. State Pension age will rise to 66 between 2018-2020 and again to 67 in 2026 based on life expectancy.
Ros Altmann, director general of Saga, said: "These are brave proposals, but are long overdue in order to improve pension provision for our ageing population.
"With these proposals, future pensioners should eventually have a system that is simple, clear and understandable. They will know the deal. It will take time to get there but we will be on the right path."
Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "This vital reform lays the foundation to rebuild the UK's retirement savings. It will simplify the state pension for millions of today's workers, allowing them to plan their retirement with more certainty."

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