The state's ambitious new plans to raise the pension age to 75 have been made public.

The state pension age should be raised from its existing beginning point of 66 to the new higher age, according to recent proposals, although the payout should increase by 40%.

However, the plans provide the option to apply for Universal Credit for people who, after they turn 60, don't have enough money to live on.

The Social Market Foundation published the report proposing the later - but significantly larger state pension - called the "Senior Citizen’s Pension”. The report authors claim that the plans would provide more certainty of income until death.

Michael Johnson is an expert on pensions policy and taxation and the author of ‘Pensions: a vision for the future'.

He said that having a set amount live on from the age of 75 would encourage retirees to spend their private pension pots and other savings into a 15 year window between the age of 60 and 75.

The benefit of this, Johnson suggests, is that private pots and savings would give higher incomes because of the removal of the life expectancy “tail risk”.

However, those without private pension pots or savings would get additional state support from Universal Credit at the enhanced rate under tha plans.

The report now calls on a Royal Commission for a review of the state pension’s future financial sustainability - as well as the potential means-testing of the state pension as it is in Australia.

Johnson said: "Australia aggressively means-tests its Old Age Pension (OAP) above pretty modest asset and income thresholds.

“A home-owning couple with net assets (including property) in excess of $419,000 (£228,000) see their OAP gradually reduced, and if net assets exceed $954,000 (£519,000) they get nothing.

"Their income test is similarly draconian. If, for example, a couple's combined income exceeds $336 (£183) per fortnight, they lose 40 cents in OAP for each dollar over $336 (for singles the threshold is $190 (£98)."

Meanwhile, Brits are at risk of losing a staggering amont of cash as millions have lost track of their pension pots.

Experts are now sounding the alarm that job-hopping is causing workers to forget about their hard-earned money.

It's believed that around three million pension pots, averaging £9,500 each and soaring to £16,000 for those aged between 55 and 75, remain unclaimed.