Radical changes are planned for the state pension system to align it with the fact that we are living longer and there are comparatively fewer people of working age to support the retired population. By 2046 the state retirement age will have risen to 68 - it is currently 60 for women and 65 for men.
Some changes take effect when the new tax year begins on April 6 2010. We take a look at what they are...
Women to work longer
The process of equalising the retirement age for men and women begins next month. Over the next 10 years, the state retirement age for women will go up to 65 (between 2024 and 2046 it will then rise to 68 for both sexes).
Only women who turn 60 between now and April 5 will be able to retire on their 60th birthday. Those born after this date will have to wait - if you are 60 on April 6, you will have to wait until May 6 before you can retire. This strategy will be used to lift the retirement age for women so that it is 65 by 2020.
If you are unsure about when you'll qualify for the basic state pension, which is currently £95.25 a week, use the Directgov pensions calculator. All you need is your date of birth.
Changes to when you can draw your personal pension
While the state retirement age is 60 or 65, you don't have to wait until that age to draw your pension if you have a personal pension or are part of a company scheme. However, the age at which you can access your pension, will rise from 50 to 55 from April.
That means if you're over 50 but under 55, you have a few weeks left in which you could opt to draw your pension. After April 6, that choice will be gone until your 55th birthday.
Pay less National Insurance
There is some good news, particularly for people who have to take a few years out of work, perhaps to raise a family.
After April 6, you'll only need to have made National Insurance payments for 30 years in order to qualify for the full basic state pension. At the moment, men have to work for 44 years and women for 39 in order to receive the full benefit, so this will make a significant difference to many people.
If you reach state pension age before April 6 and are worried that you'll miss out - or if you're worried about chalking up the necessary 30 years during your working life - you can buy back missed years.
The cost of doing so changes occasionally, but at the moment it's £626.60 per year.
Anyone who doesn't have enough years will receive one-thirtieth of the full state pension for each year they do have. At the moment, there's a minimum number of qualifying years before you earn any state pension income - 10 years for women and 11 years for men.
Help for carers
If you work hard caring for your children or perhaps elderly parents or family, it will soon be easier for you to build up qualifying years for your basic state pension.
Previously, people needed to be caring for a minimum of 35 hours a week in order to be given credits towards their state pension.
From April 6, this will fall to 20 hours a week. For many stay-at-home parents, this is a really welcome development.
Make sure you're benefitting from these credits as they can make a big difference to your retirement income.
Call the state pension helpline on 0800 678 1132 for more information if you are worried you're not getting your credits. Unfortunately, anyone working part-time won't qualify.
Time to save
Although many people are starting to worry that their income in retirement won't be as much as they need to be comfortable, millions of us are failing to save.
F&C Asset Management recently revealed that 38% of women and 27% of men say they're "not at all confident" they will have enough money.
If you want some help planning for your retirement, we can put you in touch with an adviser.
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