Millions will have to work for another year as state pension set to rise to 68 by 2039
The government announced the move this afternoon - years ahead of schedule
ALL workers aged 47 or younger will have to work another year before they get a state pension, the government announced last night.
Ministers raised the official retirement age to 68 from 2037, bringing forward the planned rise by seven years.
The painful move was necessary as people are now living ever longer, they insisted.
The major change affects everyone born between between April 6 1970 and April 5 1978 – one in seven of today’s workers.
The move was recommended in an independent report by former CBI boss John Cridland.
Announcing it to MPs yesterday, Work and Pensions Secretary David Gauke said: “Increasing longevity provides challenges for the government.
“Failing to act now in the face of demographic pressures would be irresponsible.
“There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of taxpayers.”
But because pensioners are now living for longer, the Cabinet minister added: “Even with the rise today, future pensioners can still expect on average more than 22 years in receipt of the state pension.”
The number of people over state pension age is now projected to grow by a third between 2017 and 2042 — from 12.4million to 16.9million – Mr Gauke also argued.
The move saves taxpayers an estimated £74billion by 2046, or the equivalent of £400 a year per household.
But OAPs pressure group Age UK accused ministers of “picking the pockets” of everyone in their late forties and younger.
And Labour attacked the move as “anything but fair” and promised to stick by its election manifesto pledge to freeze the pension age at 66.
But the Tory MPs attacked the move as “financially insane”, after the report also revealed Jeremy Corbyn’s plan would set taxpayers back an extra £250bn.
In 2015 average life expectancy in Britain was 79.6 years for men and 83.1 years for women, Men born today are now expected to live until 90 and women to 93.
Downing Street last night insisted the government had not tried to bury the bad news for workers in their 40s on the day that BBC stars’ huge salaries were revealed.