George Osborne has announced the increase in the State Pension.

The basic State Pension will once again be increased by the triple lock to £119.30 a week from April 2016 and sets the rate of the new single tier pension at £155.65 a week.

Richard Priestley, executive director of Retirement Income at Canada Life, said: “The move by the Chancellor will protect the incomes of pensioners, helping cement the rapid income gains they have enjoyed of late. In the last twenty years, retired households have seen their incomes climb to record highs, up by 77% in real terms. This has far outstripped growth seen by the rest of the population. The state pension alone makes up two fifths of a typical household’s income, so this latest move is a boost pensioners will certainly enjoy.

“For those generations coming along behind, the picture may not be so rosy as they face more of an uphill battle to fund retirement. Defined benefit pension schemes which provided a guaranteed income linked to salary will gradually disappear altogether. This means savers will have to take more responsibility for their own retirement, though the government is capping the amount they are allowed to build up in their pension funds. Prospective retirees must consider long-term saving early enough in their careers to ensure their standards of living match those of the current retired generation.”