The state pension age will increase from 67 to 68 from 2037, seven years earlier than planned.
David Gauke, the work and pensions secretary, announced the move in the House of Commons on Wednesday afternoon.
He told MPs the increase was the “responsible and fair course of acton” as life expectancy had improved.
The change will affect people born after 5 April 1970. The increase had been legislated to come in between 2044 and 2046. The government said bringing the date forward will save £74bn.
It follows the recommendation made by John Cridland, the former director-general of the CBI, who carried out a review of pensions for the government.
Gauke said it would be “irresponsible” and “place an extremely unfair burden on younger generations” to keep the pension age the same - as is Labour’s policy.
Debbie Abrahams, the shadow work and pensions secretary, said the increase was “an astonishing continuation of austerity” that would force 34 million people to work longer than under Labour’s plans.
“The latest research shows that working people in some places will now fall ill ten years before receiving their state pension under the Tories’ new plan - and just days ago, evidence emerged showing that increases in life expectancy are stalling.
“Indeed, most pensioners will now face what has been described as a “toxic cocktail” of ill health throughout their whole retirement.
Labour has pledged to leave the state pension age at 66 while it looked again “emerging evidence”.