Australians would be denied access to both superannuation and the age pension until they turned 70 under a radical plan that goes far beyond the one proposed by the Productivity Commission last week.

The pension access age is currently scheduled to climb six months from 65 to 65½ in 2017. After that it will climb six months every two years until it reaches 67 in 2023.

"Some who would prefer to stop working earlier will not be able to afford to do so." Credit:Greg Newington

A new proposal from the Grattan Institute would double the pace from 2017 onwards, lifting the access age by six months every year until it hits 70 in 2025. After that it would be progressively lifted further in line with increases in lifespans, with no ultimate limit.

Developed parallel to, and without knowledge of, the Productivity Commission plan, the Grattan Institute proposal would also lift the age of access to superannuation. The super access age is already scheduled to climb from 55 to 60 by 2024. But Grattan would increase it by six months every year from 2015 until it hit 70 in 2035. Then it would index the access age to rise automatically.