10 million Brits who are retired or will have retired when the government’s new state pension reform plans come into effect by 2015 or 2016 still need to maximise retirement income, says Key Retirement Solutions.

The equity release adviser has welcomed the government’s new flat rate pension scheme, but has stressed that pensioners are still no better off than before, as they struggle to supplement their income.

Around 600,000 people retire each year and will have to rely on the current mix of state pension and benefits before the new flat rate scheme comes into effect.

The current full state pension is £97.65 a week, but can be topped up to £132.60 with pension credit.

Under the new scheme, this could be replaced by a new £140 flat rate, with inflation expected to push this up to £155 by 2015 or 2016.

Dean Mirfin, group director at Key Retirement Solutions, said: “This announcement is great news for future pensioners who will no longer face the complexity of the old system in their effort to gain what they are entitled to.