New Chancellor of the Exchequer, Rishi Sunak confirmed in today's Budget that the state pension will rise by 3.9% in the 2020-21 tax year.
He also unveiled a big increase in the thresholds for the tapered annual allowance, but left the core pension tax relief system unchanged.
The lifetime allowance - the total amount you can put into a pension - for pension savings will increase in line with CPI for 2020-21, rising to £1,073,000.
The state pension will increase by 3.9% from 6 April 2020.
The rise is thanks to the triple-lock system, which states that the state pension must rise by September's price inflation, average earnings growth or 2.5% - whichever is higher.
In this case, the state pension will be matching the 3.9% average earnings increase seen by UK workers in July last year.
Both the pre-April 2016 basic state pension and the new state pension are protected by the triple lock guarantee.
Those who are entitled to the full new single-tier state pension will see their payments increase by £6.60 per week, taking the weekly amount from to £168.60 to £175.20.
New state pensioners will be £343.20 better off by the end of the 2020-21 tax year, with annual income increasing from £8,767.20 to £9,110.40 to a year.
The basic state pension will rise by £5.05 per week (£129.20 to £134.25 per week). This will translate into an annual boost of £262.60 a year with total annual income rising from £6,718.40 to £6,981.
Our graph shows the amount of state pension you receive per week.
The pension lifetime allowance has been set at £1,073,000 for 2020-21.
You can save as much as you want to in your pension during your working life - but if it exceeds a total amount (the lifetime allowance), you could be hit with a hefty tax charge.
Mr Sunak also unveiled plans to increase the tapered annual allowance thresholds by £90,000. This will apply to all high earners, but will particularly help to ease the pressure on some NHS workers (eg doctors and surgeons) who've received large tax bills as a result of their earnings.
The tapered annual allowance was introduced from 6 April 2016 to limit the amount of pension tax relief available to higher earners.
The taper currently sees the annual allowance reduce from £40,000 to £10,000 for those with 'threshold' incomes of £110,000 and 'adjusted' annual incomes of £150,000 to £210,000.
Broadly, those earning more than £110,000 are assessed to see whether they're subject to the annual allowance taper. Adjusted income is your total taxable income - so salary, dividends, rental income, savings interest, plus employer pension contributions.
From April 2020, both the threshold and adjusted incomes will rise by £90,000 to £200,000 and £240,000, respectively. For those with total income of more than £300,000, the annual allowance will gradually fall from £10,000 to £4,000, so it will be £4,000 only for anybody earning in excess of £312,000.
The Chancellor resisted more fundamental changes to the pension tax relief system.