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The state pension age in Britain will increase to 68 in mid 2030s and 69 in late 2040s, announced Finance Minister George Osborne on Thursday.
Delivering his Autumn Statement, the second of the two most important economic statements the finance minister gives in the parliament every year, Osborne said the date when the state pension age rises to 68 will be brought forward to the mid-2030s, and the age could rise to 69 by the late 2040s.
He noted that millions will have to wait longer for a state pension so that the pension age "keeps tracks with life expectancy" and future taxpayers are spared a massive bill.
The rise of pension age to 68 is based on the current level of 65 years old, which means people now in their forties will not get the state pension until they are 68, while those in their thirties will have to wait until they are 69.
"This is one of those difficult decisions governments have to make if they're serious about controlling the public finances," Osborne said.
He also announced that state pension will rise by 2.95 pounds a week from April next year.
Other main measures and forecast announced by Osborne in his Autumn Statement includes:
-- National debt to be 75.5 percent of GDP this year, 18 billion pounds (29.4 billion U.S. dollars) lower than forecast.
-- 2013/14 borrowing forecast is revised down to 111 billion pounds, 9 billion pounds less than expected.
-- Underlying measure of deficit revised down to 6.8 percent this year, with no deficit by 2018/19.
-- Doubling export finance capacity to 50 billion pounds.
-- An extra 1 billion pounds of cuts from the budgets of government departments for each of the next three years.
-- Plans for 375 billion of investment in energy, transport, communications, and water projects.
-- Selling off the government's 40 percent stake in the Eurostar rail service.
-- Total number of jobs to rise by 400,000 this year and 3.1 million jobs predicted to be created by 2019.
-- Tax allowances aiming to encourage investment in shale gas to cut tax on early profits by 50 percent.
-- More investment in quantum technology.
