The government will increase the state pension age from to 67 by 2028, in a move it anticipates will save around £60 billion.
The increase, which will be made between April 2026 and April 2028, was announced by Chancellor George Osborne during his presentation of the Autumn Statement.
The Office of Budget Responsibility forecasts that spending on state pensions will rise from 5.5% of gross domestic product (GDP) in 2015-16 to 7.9% of GDP in 2060-61.
Zoe Lynch, partner at Sacker and Partners, said: “The rise in the state pension age from 66 to 67 will be brought forward by a decade to 2026 from 2036. This follows the rise to age 66 being accelerated as well and is understandable given the longevity figures. At least people have more time to prepare for this one.”
Plans to increase the state pension age to 66 have already been brought forward to 2020.
Read more articles on the Autumn Statement 2011