PRIME Minister Scott Morrison has made a stunning backflip on national television after announcing he will no longer be raising the age pension to 70.

Appearing on Nine's Today show this morning, Mr Morrison revealed the government would dump a budget decision to lift the age and keep it at 67.

"Look I was going to say this next week," Mr Morrison told Today host Karl Stefanovic. "But I may as well say it here Karl.

"I've already consulted my colleagues on that, and next week Cabinet will be ratifying a decision to reverse taking the retirement age to 70. It will remain at 67, which is what Labor increased it to.

"I don't think we need that measure any longer when it comes to raising the pension age."

Under a proposal to begin in 2025, the Coalition would raise the pension age - by six months every two years - until eligibility reached 70 in 2035.

A 2013 Productivity Commission report announced the measure would save the budget $150 billion over 50 years.

The stunning backflip has been viewed as a major victory for senior's advocates.

"We always said you shouldn't increase the pension age outside of a comprehensive review of retirement incomes," Council on The Ageing chief executive Ian Yates told News Corp.