Investment trade body, the Tax Incentivised Savings Association (TISA) has applauded the proposed simplification of the state pension in today’s Budget.

The association – which represents the savings and investment association said the chancellor’s proposed reforms are key to improving the nation’s attitude towards long-term savings.

Malcolm Small, director of policy at TISA director of policy, said the chancellor is quite right that simplification of our complex state pensions system is essential.

He said, 'Confirmation of a move towards a new single tier pension at a flat rate and currently worth around £140 per week is therefore good news.’

He added, ‘The sooner this is implemented the better. However, we do need to see further details about the level of contributions that this will be based on as this implies a continuation of a means-tested benefits regime, which would be undesirable.’

Small said that the confirmation of the increase in the state retirement age to 66 in 2020 is an acknowledgement of increasing life expectancy.

He continued, ‘I am also cautiously optimistic that the new automatic mechanism to increase the state pension age will be effective.

‘But we will need to accelerate the speed of travel towards a higher state retirement age if we are to adequately fund the UK's pensions system.’