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NZ Newswire, 12/7/13 10am

Labour is urging the government to reconsider its position on the pension age.

The Treasury on Thursday released long-term fiscal forecasts showing future governments will face serious challenges as the cost of services exceed revenue.

Its report says there will have to be a tight rein on spending and revenue options include raising income tax, increasing GST and raising the eligibility age for national superannuation from 65 to 67.

Before the 2008 election, Prime Minister John Key pledged he would resign from parliament if there was any change to national super under his watch.

Mr Key made the promise because Labour was claiming National had a secret agenda to raise the age, and since then the government has refused to even consider it.

Labour now has a policy to gradually raise it to 67, starting in 2020, and finance spokesman David Parker is describing Mr Key's promise as "an accidental pledge" and "a silly off-the-cuff remark".

Mr Parker says that in two years the cost of national super will be more than the government spends on education.

"We cannot make the cost of paying for retirement more important than our children's future," he said.

"Everyone agrees on that and Treasury has shown how important it is."

Treasury's report says the number of people aged over 65 has doubled since 1980 and will double again by 2036, when it will reach 1.25 million.