The new flat-rate state pension, set at about £144 a week and starting in April 2017, is set to be confirmed later today (Monday).
The BBC reports the final figure will actually be higher than £144 as it will rise in line with inflation between over the next four years.
It said the current state pension is £107.45 per week, but can be topped up to £142.70 with pensions credit.
The new flat-rate pension will be paid only to new pensioners who reach state pension age from a date expected to be 6 April, 2017, the report added.
The state pension age is set to rise to 66 for both men and women by 2020, with another increase to 67 between 2026 and 2028.
Pensions expert Ros Altmann said the proposals will include the following:
• The White Paper will propose a new state pension system, paying just one state pension of around £145 a week to anyone with a full National Insurance record
• The new pension will start after 2016-2017 and eventually replace basic state pension and all additional state pensions with one simple payment
• The age at which the pension will be paid will rise in future, as life expectancy rises. It will rise to age 66 in 2020 and age 67 by 2028, then further thereafter
• The new state pension will be just above the current pension credit guarantee credit means-test level, to make it safer for people to save
• Women, the self employed and future pensioners (not existing pensioners) on modest incomes with private savings will be winners.
• This new system will reduce - but not eliminate - pensioner means-testing. Future pensioners who do not have a full NI record, or those who may get housing benefit or council tax benefit may still be means-tested.
• Anyone already entitled to more than £145 a week will still receive the higher amounts, so there will be years of transition to the full new scheme when benefits from the past system will still be honoured
• The new system will be cost-neutral, it will just spend money differently, for example state pension age will rise and savings credit and contracting out will be abolished
• There will be no more contracting out of the state pension system and private schemes will need to change their benefit structure in recognition of no longer having to replace the additional state pension.
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