in his Autumn Statement, this lunchtime, he said: "Let's not leave it to our children to take emergency action to rescue the public finances; let's think ahead and take responsible, sensible steps now.
"So starting in the year 2026, we will increase the State Pension Age from 66 to 67 - so we can go on paying a decent pension to people who are living longer. Australia, America, and Germany have all taken similar steps.
"And by saving a staggering £59 billion it will mean a long term future for the basic state pension.
"We are showing a world sceptical that democratic western governments can take tough decisions that Britain will pay its way in the world"
Joanne Segars, chief executive of the National Association of Pension Funds, said: "Longer lives do mean more time at work, so it is understandable that the rise to 67 will start earlier. The Government has learned from its recent mistake and is giving people sufficient notice this time.
"The payoff for extra years at work must be a simpler, more generous state pension that people can build their savings on. The Government needs to prioritise the creation of this new 'foundation' state pension, and the Chancellor's silence on this was disappointing.
"State pensions are increasing by 5.2%, which is the highest inflation link the Government could have used. Pensioners should be happy that Osborne resisted the temptation to pick a lower rate."