David Cameron has put the brakes on the plan for a flat rate state pension of £140 amid fears that the government could alienate the electorally crucial "grey" vote.
Those who could lose out include higher earners, who will no longer be able to boost their retirement income through the state second pension, which will be abolished.
Earlier this month Investors Chronicle argued that a flat rate state pension was long overdue. Current state pension benefits are calculated via a system of means testing for people on lower incomes, plus additional payments via the state pension for higher earners. Currently the amount of state pension money paid out to pensioners can differ by more than £200 a week - that's a difference of £10,000 a year. This is because the level of basic and additional state pension payouts can vary so much. The latest DWP administrative data shows state pension income varies from around £7 a week to £230 a week.