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During the next parliament the state pension will become more generous & will be linked to earings rather than prices when future increases take place.
The number of years it takes for people to become eligable for a state pension will be cut to just 30 (at present, woment have to work 39 years to earn a basic state pension & men 44).
From 2012 people will be enrolled in a new low-cost savings scheme, although there will be the option to opt out if it is unsuitable for them.
Is this the end of a dream of retiring early? The idea is that you wait longer for your state pension, not that you have to continue to work. You will be free to retire as early as you wish but you will have to support yourself prior to becoming eligable to claim your state pension.
Will you be forced to save for your pension? The government has gone for a system of soft compulsion. If you're an employee you will be automatically enrolled in the low-cost savings scheme from 2012. Emlpoyers can opt their employees out of the scheme so long as they are offering their own scheme on an auto-enrolment basis & are making contributions at a higher level than that of the low-cost savings scheme.
Is this the end of the pensions crisis? It's far too early to call. The decision is yet to be made on who gets to run the new scheme - the government or the insurance industry & some critics warn it won't do enough to boost workplace pensions.