The introduction of a new simplified state-pension will now be introduced in 2016.
The single-tier state pension is set to provide a guaranteed income of around £144-a-week to all retirees by combining all existing benefits and credits.
The decision to implement the new pension system earlier than planned will mean thousands more retirees are able to enjoy the new system, which the chancellor hopes will please elderly voters.
Speaking yesterday on BBC1's Andrew Marr show Osborne said it's a "huge boost" for people who want to save for their retirement.
He said: "That is another example of how this Government is helping people who want to save, people who want to leave something to their children like their home - people who do the right thing."
The National Association of Pension Funds (NAPF) welcomed the announcement. It's chief executive, Joanne Segars, said: "The Government must ensure that the implementation of these changes is workable for pension funds. This is a very tight timeframe and we have to wonder if it can be delivered.
"If the Government gets it wrong then this runs the risk of sparking a fresh round of final salary pension closures in the private sector.
"Businesses who get caught on the wrong side of these changes will lose a significant rebate from the end of contracting out, and they will question whether they want to continue running these pensions.
"It is essential to give pension funds the flexibility and time to adapt and make the changes."
