Proposals on the scrapping of the default retirement age (DRA) have been published for consultation by the government.
Under the plans, the right of employers to force staff to retire at 65 will be taken away by October 2011.
The consultation follows on from George Osborne's announcement in last month's Budget that the DRA would be phased out.
Its aim is to lessen the administrative burden of the legislation on employers.
Employment relations minister Edward Davey pointed out that people are now living longer and healthier lives, which means many are able to work long into their 60s and even 70s.
Pensions minister Steve Web said: "Many older people want to work after age 65 and have a wealth of skills and experience that are not being used.
"We want to get rid of the DRA so that if they want to work they can do so."
Commenting on the consultation, the Confederation of British Industry warned that the government's timetable for scrapping the DRA leaves companies with little time to prepare.
