Australians born after 1965 will have to work until they are 70 before they are eligible for the age pension, Treasurer Joe Hockey will announce later on Friday.
The federal government has previously flagged that it is looking at raising the retirement age, with Mr Hockey stating last month it was an issue that needed to be addressed.
“It may be the case that my generation has to work for an extra three years … the fact is that now, as in the United Kingdom, it’s probably the case in Australia, one in every three children born today will live to 100,” he said at the time.
Fairfax Media has learnt that Mr Hockey will confirm the rise in a speech to the Australia-Israel Chamber of Commerce in Melbourne on Friday.
The retirement age is already scheduled to rise from 65 to 67 by 2023 under changes introduced by the former Labor government. The government's policy shift would ensure the age continues to slowly rise through until 2035.
The rise to 70 by 2035 is quicker than the shift suggested by the government's own Commission of Audit, released on Thursday, which recommended the rise be put in place by 2053.
The announcement also comes as Prime Minister Tony Abbott and state premiers and chief ministers meet in Canberrra on Friday to formally sign up to the federal government's proposed asset recycling package.
That package is designed to spur the states to sell their old assets and plough the money back into new infrastructure investment by providing states an extra 15 per cent of the sale value of their assets.
NSW Premier Mike Baird has already rejected the Audit Commission's proposed slow-down in the roll out of the National Disability Insurance Scheme ahead of the COAG meeting on Friday, but WA Premier Colin Barnett suggested it was an idea that had merit.