Bill English has announced that the government intends to progressively raise the pension age from 65 to 67.
Under the proposed change announced today no-one born on or before 30 June 1972 would be affected.
The pension age is the age that you can stop working and the government will then provide you money to help you live.
Mr English said the policy would save the government about $4 billion a year once it was fully in place in 2040.
He said the policy’s 20-year lead-in was a “fair and balanced way to give people time to adjust”.
People were healthier and lived longer, he said, so increasing the age while there was time for people to adapt was the right thing to do.
It would also bring it into line with other countries – Australia, the United Kingdom, Denmark, Germany and the United States – which were all increasing their pension ages to 67.
The change would be phased in from 1 July 2037.