The Pensions Bill represents a landmark settlement for future generations, pensions secretary John Hutton has said.
He said it would "give a guarantee to link the basic state pension to earnings, enshrining this commitment in primary legislation".
"This would mean that the state pension would be worth twice as much in 2050 than it would have been without reform," he added.
"In order to ensure the reforms are affordable and sustainable, we plan to raise the state pension age gradually to 68 by 2046.
"This means that parliament will be asked to legislate for the next forty years. It is a big step but is absolutely the right way to meet the demographic challenge so that we do not burden our children and grandchildren with the cost of a population spending longer and longer in retirement.
"We are making the system fairer for women and carers.
"Reducing the number of years needed for a full basic state pension, and introducing weekly credits to recognise and reward caring in the same way as working, means that almost half a million extra women over state pension age in 2025 - aged around 45 to 55 today - would be entitled to a full basic state pension."
Stakeholder Response: Age Concern
Age Concern director general Gordon Lishman said: "This Bill is very good news for future pensioners but short-changes today's.
"It’s great news that the government has put an end to the uncertainty and given a clear commitment to restore the link to earnings in the next parliament. This is fundamental to building a pensions system that will stand the long test of time.
"Upholding the link between Pension Credit and earnings is also extremely welcome. But still more must be done to help today’s pensioners who are already struggling on a pitifully low state pension and missing out on vital benefits cash."
"After years of campaigning, we are thrilled that the government has finally listened to our calls for a better deal for women.
"Reducing the number of years needed for a full state pension to 30 and promising a more flexible carer’s credit will boost the pensions prospects of millions of women and carers.
"But these changes must be introduced retrospectively to help those already retired with incomplete records."
"If the state pension age must rise to fund a better state pension, there has to be a significant transformation in the workplace to enable older people to continue to work if they want or need to.
"Mandatory retirement ages must be scrapped and targeted programmes must put in place to support those who need training and those who cannot work.
"The government must ensure that this move does not worsen the inequalities between rich and poor."
"It is disappointing that the government has failed to recognise the need for an ongoing pensions commission.
"We strongly support the idea of having an independent body to advise government on the success of the new measures, as well as any new steps needed to ensure everyone has the chance of a decent retirement income."
"We strongly support proposals for a new system of personal accounts and look forward to seeing the detail in next month’s white paper.
"A national pensions saving scheme would give those without access to a private pension the chance to build up essential savings.
"Immediate automatic enrolment and compulsory employer contributions will have an important part to play if such a scheme is to work effectively."
Stakeholder Response: Which?
Doug Taylor, personal finance campaigner from Which?, said: "The establishment of an advisory Delivery Authority for personal accounts comes as a welcome advance for consumers and for Which?.
"However, it is critical at this stage that the Delivery Authority continues to reflect a consumer focussed approach to personal accounts. This is best guaranteed if we see a true consumer advocate appointed.
"A trusted, low cost and simple personal accounts scheme for 2012 will go a way to ensuring that future pensioners will have a better income in retirement."
Stakeholder Response: Help the Aged
Mervyn Kohler, head of public affairs at Help the Aged, said: "The government's proposals are long-term measures which will do precious little for the many pensioners who are already surviving at the margins.
"Notwithstanding this Bill, the campaign to secure an end to pensioner poverty must go on to convince Ministers to urgently lift the Basic State Pension to an acceptable level and to address the pernicious growth of means testing - now an important source of income for potentially half our older population.
"That said, the Bill does contain some welcome elements which will cut back on the bewildering complexity in the pensions system.
"Many people find making arrangements for their retirement to be too confusing to tackle, which reduces personal saving and instead leads to greater dependence on state benefits.
"The government also rightly sees the need for employers to contribute to the pensions of their workforce.
"Personal saving is critical in the current jigsaw of pension building, and this requires an effective vehicle for lower paid employees to invest with confidence for their future.
"However, Help the Aged believes that the Bill as published does not go far or quickly enough.
"Much more needs to be done to restore confidence in a pensions system that has suffered from too many broken promises and timid policy making.
"Today's limited ambition on the part of the government could lead to another missed opportunity with harsh consequences for yet another generation of pensioners."
Stakeholder Response: GMB
Naomi Cooke, GMB pensions officer, said: "No pensioner should have to fill out a tonne of means testing forms in order to get £114 per week, this should come to them as of right after decades of work.
"Fundamental reform is necessary but the government needs to make sure that those who most need it get the help a reformed system should provide.
"In the same month as the government publishes life expectancy figures showing that men in Glasgow die on average at 69, they try to raise the state pension age to 68. Increasing the state pension age directly penalises those on the lowest incomes and a Labour government should know better."
Stakeholder Response: Equal Opportunities Commission
Jenny Watson, chair of the EOC, said: "Today's Bill is an important step towards ending the scandalous inequalities currently faced by women in retirement.
"The unpaid contribution to society made by millions of parents and carers will finally be recognised and rewarded on the same terms as paid employment.
"Many more women retiring from 2010 onwards can look forward to a full basic state pension, a fair reward for a life spent working and caring.
"The Pensions Bill is a landmark in public policy making, one which puts the needs of women at its heart.
"For too long women have been penalised for the complex lives they lead. Breaks for caring, part-time work and changing jobs more frequently have often been invisible to policy makers.
"By reforming the state pension system so that it works better for women, it will work better for everyone, meeting the needs of today’s more flexible labour market where there are no jobs for life.
"The DWP's approach to pension reform, looking at the different needs of women and men, is a model for other government departments to follow when they formulate policy.
"Today's proposals will benefit many future pensioners, particularly younger women. But we need to be sure that everyone will benefit, including women over 45.
"We want to see as many people as possible entitled to both a full basic state pension and an adequate second state pension, so that they have a firm foundation above the poverty line on which to save, without seeing those savings lost to means testing.
"We will work with the government as the Bill progresses through Parliament to make sure this is achievable."
