Autumn Statement: State pension age to hit 67 by 2026

Chancellor George Osborne has confirmed the state pension age (SPA) will reach 67 by 2026.

The state pension age will already rise to 66 by 2020 instead of 2026 under previous plans.

The move to bring the rise to 67 eight years early was anticipated after pensions minister Steve Webb said the government was considering the further rise in September.

Osborne said the move mirrors the systems in Australia, the US and Germany, and that it will save £59bn in public spending.

During the Autumn Statement, the Chancellor announced the government will increase the basic state pension by £5.30 per week from April next year, after rumours it would change the rules by which it calculates its "triple lock" for the benefit.

The triple lock dictates state pensions must be paid by the highest of 2.5%, CPI inflation or wage inflation.

Osborne said pensions credit will also rise by £5.35 per week, an increase which will be paid for by an increase in the means-tested income threshold for savings credit.

A full basic State Pension will be £107.45 per week from April 2012.

The full couple rate for those whose entitlement is based on their spouse's or civil partner's pension will rise by £8.50 to £171.85 per week.

Andrew Tully, pensions technical director at MGM Advantage said: "It is likely the increase to age 68 will also come sooner than the planned 2046."

John Lawson, head of pensions policy at Standard Life, said that if the SPA continues to increase at the current rate, it will hit 70 by 2047.

Children aged up to nine years old today will not get their state pension until they are 73, Standard Life research said.

The Treasury has said it will consider a new system of linking SPA rises with longevity so that it increases automatically in future.