When the state pension was introduced in 1909, the maximum payment was five shillings (25p) a week - the equivalent of about £20 today.
Just over 500,000 old and poor people queued up to receive it. They had to be at least 70 years old, have an income of less than 12 shillings a week and not have too much furniture, which was judged as a sign of wealth.
An overhaul of the state pension system will see a single-tier pension - of £155 a week - being paid to some new pensioners from April 2016. Others will get less, and those who qualified for a pension before April 2016 will remain on the old system.
So how will this change the current system and how will it affect you?