George Osborne will confirm in today's Autumn Statement that millions of young people will be forced to work until they're 70 years old, under plans to save £400 billion over the next 50 years.
In a controversial move already dubbed "work till you drop" by critics, the Chancellor will bring forward the rise in the state retirement age so that it could rise as high as 70 after 2050.
The move means people aged 30 would have to work until 69, while those younger than that will have to work for even longer. The Chancellor will unveil a new rule that will ensure the official retirement age keeps increasing, on the basis that people are living longer and they should spend on average a third of their adult lives in retirement.
A Treasury source said the move aimed to safeguard a "responsible recovery", adding: "It is a difficult decision to make sure there is a fair deal across future generations and that the country can live within its means."
Osborne's move will see the state retirement age rise 15 years quicker than previously planned to 68 by the mid 2030s and 69 by the late 2040s, with it yet to rise further later on.
Nick Clegg has defended the move, telling LBC 97.3 this morning: "What we are seeking to do is to keep the principle that around a third of your adult life is in retirement.
"Of course if that's your rule of thumb then it needs to keep up with the fact that people are living longer. So the retirement age shifts. I'm not pretending it is easy but it is part of society as people become more affluent and live longer, healthier lives."
TUC General Secretary Frances O’Grady 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.
“There are already massive inequalities in the state pension, with 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."
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