The proposed reforms would be a welcome simplification of the current rather complex rules, particularly in the short run, but they also imply a reduction in the state pensions that most people born after around 1970 can expect to receive from the state.
This cut in the generosity of pension benefits for currently young people will help reduce public spending on pensioners in the longer-run as pressures from an ageing population intensify. Reducing state support will also increase the incentives for younger cohorts to save privately for their retirement.
The future flat-rate pension unveiled by the Government will be worth £144 in today's money. But who stands to benefit and who loses out?
Ministers promise a richer retirement for women, low earners and the self employed, but others warn people must work longer for less reward.