Despite specifying JDK 1.7 in all project settings (including in File -> Project Structure -> Project :: Project SDK), the following error is produced by
File -> Project Structure -> Project :: Project SDK
If nothing of this helps (my case), you can set it in your pom.xml, like this:
1.7 1.7
As this cool guy mentioned here: https://stackoverflow.com/a/25888116/1643465