The government's review of the default retirement age is being brought forward to 2010 – 12 months earlier than scheduled.

Ministers have revised the timetable as a result of the 'change in economic circumstances' since the default retirement age was introduced.

The report, Building a society for all ages, indicates that the government has started its consultation process with stakeholders and is collecting evidence that will be used to determine the outcome of the review.

Commenting on the announcement, William O'Neill Partner at Rowlands Solicitors said: "Any changes to the default retirement age are expected to be introduced in 2011 to enable employers time to prepare and employees to assess their options for retirement".

The government's Age Positive policy, an initiative that aims to works with employers to encourage retaining and recruiting older workers, is to be expanded to allow more employers to give staff greater choice over retirement.

In his foreword to Building a society for all ages, the prime minister, Gordon Brown, said: "For the first time in our history, there are more pensioners than there are children under the age of 16.

"Evidence suggests that allowing older people to continue working could be a big factor in the success of Britain's businesses and our future economic growth."

Mr Brown added: "The scale and complexity of the challenge should not be underestimated, but I have no doubt that we should view these demographic changes as an opportunity rather than as a threat".