Millions of people born in the 1970s will have to wait longer for their state pension as the government has raised the age limit when payments start.
Anyone born between April 6, 1970 and April 5, 1978 will have to wait an extra year for their state pension as the starting point has moved to their 68th birthday.
The Department of Work and Pensions has tried to soften the blow by pointing out that this age group are likely to receive more state pension even though payment starts later as they can expect to live longer in retirement.
Official figures show that when the state pension was introduced in 1948, a 65-year-old could expect a retirement of 13.5 years, equal to just under a quarter of their adult life.
22 years in retirement
In 2017, someone aged 65 can expect a 22.8-year retirement that represents a third of their adult life.
Secretary of State for Work and Pensions David Gauke said: “I want Britain to be the best country in the world in which to grow old, where everyone enjoys the dignity and security they deserve in retirement.
“Since 1948 the state pension has been an important part of society, providing financial security to all in later life.
“As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.
£250 billion pension bill
“Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.”
Government statistics forecast the retired population will rise from the current 12.4 million to 16.9 million by 2042.
This would cost the country an extra £250 billion in state pension payments by 2045 if the state pension age stays at 66 years old.
The measure will start from 2037 and affects around 6 million born in the 1970s by setting their state pension age back.
