Like many south-west baby boomers, Ms Toth, 53, is now facing a longer-than-expected working life following the Federal Government's budget plan to gradually lift the age for a pension from 65 to 67 by 2023.

The change means that by the time Ms Toth, who has worked at Rogers Newsagency for 12 years, is 65 she will be required to wait at least another year before she can claim the pension.

Those now aged 51 will have to work another two years after they reach the current pension age of 65, in 2023.

"By the time I get there you know what's going to happen, they'll raise it (pension age) to 70," she laughed.

When asked how she might feel about coming into work each day at the age of 65, the mother of two adult children said, "I'll be tired, very tired".

Treasurer Wayne Swan has acknowledged the decision would not be popular.

"But currently we have five workers in Australia for every person aged 65 and over and by 2050, that will be two-and-a-half," he said.

"Basically, life expectancy has increased by 23 years since the aged pension came in.

"Twice as many people are going on it for twice as long.

". . . for the long term this was a necessary decision."