George Osborne announced a new single-tier flat-rate state pension that will be set above the means test, estimated at around £140 per week. This will simplify the current system by replacing the basic state pension and additional state pension with one pension. People reaching state pension age on or after April 6, 2013 will receive this new pension, while existing pensioners will remain on the current system. The new single-tier pension is intended to be no more costly than the current system and will only apply to those retiring after its implementation in 2016.