Concerns about young workforce after retirement age change

There are concerns this evening that proposed changes to the retirement age in the UK, which could see more and more people working into their 70s, will have a major impact upon a "lost generation" of younger workers. So how will the changes actually affect the UK employment market?

The main reason for the proposed changes is the fact that government finances are being stretched to the limit due to the fact that more and more people are living longer and longer. By simply allowing more people to work longer, well into their 70s and possibly beyond, this will take pressure off the benefit system and the pension system but reduce job opportunities and promotions for "younger employees". We must not underestimate the change this will impose upon the UK employment market and indeed we could see more young people lost to the benefit system in the short to medium term.

This is basically a chicken and egg situation, does the government do nothing and allow the benefit system to be stretched to the limit, or does the government introduce changes to the retirement age and allow people to fend for themselves?