A radical shake-up of state pensions is to be unveiled by the Government today amid warnings from unions that it will be little more than a "con trick".
The coalition's proposals include a single flat rate state pension, equivalent to around £144 in today's money, to be introduced for new pensioners from 2017 in a bid to simplify the system.
Ministers say the reform will create a simple flat rate pension set above the means test (currently £142.70) and based on 35 years of National Insurance contributions.
They claim the plans will "hugely benefit" women, low earners and the self employed, who under existing rules find it almost impossible to earn a full state pension.
Around six million workers will face higher national insurance payments in future as the practice of "contracting out" the state second pension to employers is ended.
Those affected are expected to include more than a million private sector staff enrolled in final salary schemes, and an estimated five million public sector workers.
Secretary of State for Work and Pensions, Iain Duncan Smith, said: "This reform is good news for women who for too long have been effectively punished by the current system.
"The Single Tier will mean that more women can get a full state pension in their own right, and stop this shameful situation where they are let down by the system when it comes to retirement because they have taken time out to care for their family."
Steve Webb says the new system will provide a better platform for saving Pensions Minister Steve Webb said: "The current state pension system is too complicated and leaves millions of people needing means-tested top-ups. We can do better.
"Our simple, single tier pension will provide a decent, solid foundation for new pensioners in an otherwise less certain world, ensuring it pays to save."
But the GMB union said there could be "very serious consequences" which could affect an agreement on public sector pensions.
Brian Strutton, national officer of the GMB, said: "That is the increase in National Insurance contributions that employers and employees in defined benefit pension schemes will have to pay.
"For employers that is 3.4% of the NI ranking earnings and for the six million employees affected it will be an extra 1.4%. Most DB scheme employers and members will find this unaffordable so will need to renegotiate their schemes.
"A good example is the Local Government Pension Scheme which has just been reformed by unions and government and would face an unaffordable extra NI bill of several hundred million pounds. Just as the Treasury legislation to reform public sector pensions is going through parliament, the Department for Work and Pensions (DWP) is proposing to blow it all out of the water by completely rewriting the state and occupational pension landscape."
Union members have taken to the streets to oppose the pension reforms Unions have been embroiled in a bitter dispute with the Government over its controversial public sector pension reforms, which led to a series of strikes.
An agreement was struck in local government, but unions in other areas have refused to sign up to new arrangements.
Dot Gibson, National Pensioners Convention general secretary, said: "What the Government is trying to sell is a plan for people to pay in for 35 years, get £144 a week and have to wait at least until 68 before they can collect it. No one should be taken in by what is little more than a con trick."
Shadow pensions minister Gregg McClymont said the coalition had originally suggested the reforms would be introduced in 2016.
"The chaos surrounding the Government's relaunch gets worse and worse. These pensions proposals are just half a plan yet they are still delayed by a year," he said.
"With the granny tax, this Government has already established a track-record of incompetence and secrecy so we will look at the detail, but the Government should come clean immediately and set out exactly who the losers are."
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