Budget 2012: Single state pension plan confirmed

It will move to a single-tier pension, based on contributions. This will be roughly £140 a week, in today's money.

The basic state pension is currently £102.15 a week. The second state pension is hugely complicated and depends on the amount of national insurance you've paid.

No timetable was given for this new pension system, though it's likely to be years away.

The Chancellor announced that next month the basic state pension for a single person will rise by £5.30 a week to £107.45, as expected.