The compulsory retirement age of 65 will be phased out in the coming years, the Tánaiste, Ms Harney, predicted today.
Speaking at a Progressive Democrats special conference entitled 'Ageing Ireland - Shaping the Future', the PD leader said "more flexible retirement processes" were in the interests of the economy as well as the individual.
"I don't see why we have to maintain policies that compel people to retire before they really want to. More choice and flexibility will be good for many older people, good for our society and good for our economy," Ms Harney said.
Continuing to work past 65 increases social inclusion, she said, though she pointed out that later retirement would not suit everyone.
"There is no future in compelling people to work into their 70s. But there is no future in forbidding them either."
She said changes in "attitude and practices in the workplace and elsewhere" would be required to make her vision a reality and it was an issue which affects people currently between the ages of 35 and 50.
Earlier, the conference heard from Mr Alan Walker professor of social policy at the University of Sheffield about a British 'growing older programme' which indicated higher levels of social participation among the retired was good for their health.
Ireland has already taken a small step in the direction of increasing the retirement age. The Minister for Finance, Mr McCreevy, in last month's Budget announced the compulsory retirement age of 65 in the civil service and some public service positions would be extended next April.
In her speech, Ms Harney pointed out that by 2025, 17 per cent of the population will be over 65 rising to 25 per cent by 2050.
She said the trend should be viewed in positive light though it had important implications for finance and healthcare.
The challenge for the next 15 budgets is to put policies in place to "transform" Ireland, making it a place of "active ageing, equality and social inclusion for older people".
"The key to financing an ageing Ireland is a successful economy supporting the services and pensions we aspire to," she said.