Chancellor George Osborne said British citizens should expect to spend one-third of their adult lives in retirement as he set out plans to bring forward planned increases to the state pension age.
In the Autumn Statement last week, Osborne said the state pension age rise to 68 would be brought forward from 2046 to the mid-2030s, before rising to 69 by the late 2040s.
The state pension age will already rise to 66 in 2020 and 67 by 2028. The Pensions Bill has introduced a requirement for a statutory review every five years to assess further increases.
Reviews will take account of the latest demographic data and be accompanied by an independently led report on wider factors.
The Treasury estimates the increases, coupled with state pension reforms, will save £500bn over the next 50 years.
Osborne said: “We have to guarantee that the basic state pension is affordable in the future, even as people live longer and our society grows older.
“The only way to do that is to ensure the pension age keeps track with life expectancy. We think a fair principle is that, as now, people should expect to spend up to a third of their adult life in retirement.”
Standard Life head of workplace strategy Jamie Jenkins says: “The biggest difference is for females, for whom not that long ago the state pension could be claimed at 60. But we really are living longer, and increasingly with a third of our lives in retirement.”