More workers will have to wait until age 68 for their state pension after the Chancellor confirmed entitlement rules would change quicker.
The current state pension was due to rise from 65 to 68 in 2046. But George Osborne said the date will now be brought forward to the mid-2030s.
He also said the state pension age could rise again - to 69 - at some point in the 2040s.
This means people in their 20s today could be have to work into to their 70s before being eligible for state pension benefits.
No changes were made to the minimum age you can access private pension savings, which remains at 55.
He also said the basic state pension will not be included in the overall welfare/benefit spending cap.
Osborne (pictured) said today: "People can expect to spend a third of adult life in retirement.
"This is one of those difficult decisions governments have to take if they're serious about controlling the public finances.
"One of the biggest single items of government spending is the basic state pension."
He said the move would save the taxpayer about £500bn over the next 50 years.
Pension consultant Ros Altmann claimed the move was not actually "bad news".
She explained: "Rising state pension age should not be considered a penalty on the young. It is an opportunity to embrace the benefits of all the advances in medical and work practices which are enabling most of us to have a longer, fitter working life.
"Later retirement is a realistic response to the great news that people are living longer, healthier lives and that retirement is not all it is cracked up to be.
"Romantic notions of retirement being a wonderful period of long holidays, lazy days and playing golf are simply not realistic. With just a state pension and a small amount of private savings, retirement is often a question of struggling to make ends meet."
However, TUC general secretary Frances O'Grady said today's young workers would have to "work until they drop".
He said: "There has been no new evidence to show that people are living any longer since the last time the Chancellor increased the state pension age, yet today's young workers are being told they must work until they drop."
The TUC also said "massive inequalities" in the state pension already existed.
"A woman in Corby expected to receive £67,000 less than someone in East Dorset due to widening gap in life expectancy. This pension divide will get worse as a result of today's announcement," said O'Grady.
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