A pension expert has labelled changes to the pension system announced by the Chancellor as "underwhelming".

Rachel Reeves has promised an extra £470 for pensioners next year, as she maintained the Government’s commitment to the pension triple lock.

The triple lock guarantees an increase in pensions in line with average earnings, inflation or 2.5%, whichever is highest.

Making the announcement the Chancellor said: “This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26.

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“This means that over 12 million pensioners will gain up to £470 next year.”

She added: “The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner.”

However, pension experts have warned "the damage has already been done", saying that the announced changes are "not enough".

Reacting to the announcement, Lily Megson, Policy Director at My Pension Expert, said: “"Weeks of speculation and rumoured sweeping reforms left savers anxious, causing many to rethink carefully planned retirement strategies.

"For those already wrestling with financial difficulties, this added uncertainty will have only deepened concerns about their future security. 

“A confirmation of their already-pledged commitment to the triple lock and an increase in pension credit are welcome, if underwhelming. But it is not enough.

"The government now has an opportunity to rebuild that trust by focusing on initiatives that genuinely support savers. Finally prioritising comprehensive financial education and tools like the long-delayed pension dashboard will empower people to make informed decisions and feel confident in their retirement planning.

"What's more, the second half of their pension review must deliver more than just lip service – savers need real, actionable reforms that encourage greater contributions and improve outcomes for retirement planning across the board. 

“A nod to either of these engagement-boosting policies would have been a welcome announcement that could have alleviated some of the pension tax raiding fears. 

“It’s now crucial that the Chancellor recognises the importance of stability and clarity in pension policy.

"Restoring confidence among savers will require transparent, considered policies that support long-term financial wellbeing, rather than fuelling rampant speculation that only undermines it.”