Outlining the pension shake-up in the Commons this afternoon the Pensions Minister, Steve Webb said:
The overall cost of the new system will be the same as the one it replaces. This is not a pensions giveaway for the next generation. A higher flat pension is only affordable because in the long term people will not become entitled to very large earnings-related pensions through the state system.
But in a world where everyone will be automatically enrolled into a workplace pension with a contribution from their employer it no longer makes sense for the state to be running its own, separate, earnings-related pension scheme.
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.