Industry bodies are divided over calls made by a leading Australian think tank to raise the pension age.

On Wednesday the Committee for Economic Development of Australia (CEDA) called for the Federal Government to lift the retirement age from 65 to 67.

The Association of Superannuation Funds of Australia (ASFA) welcomed the measure.

The Investment and Financial Services Association (IFSA) and the Australian Institute of Superannuation Trustees (AIST), however, slammed the proposal saying that blue collar workers would be disadvantaged.

"We already have very good policy settings at present in our retirement system. This announcement by CEDA will send shivers through working class and middle class Australians, especially those in manual labour," IFSA chief executive Richard Gilbert said.

AIST said low income earners would also be unfairly affected by the proposal.

"If the retirement age is lifted, it will be lower income earners who will end up having to work to 67 because they are most reliant on the age pension," AIST chief executive Fiona Reynolds said.

"High income earners with more savings and assets will be less affected as they will have far more choice and flexibility about retirement, allowing them to scale down work or not work at all," she said.

ASFA chief executive Pauline Vamos supported the proposal.

"Providing a supportive and encouraging environment for people to work past the age of 65 makes a lot of sense.  It will provide older Australians with a sense of purpose. I have always believed that 60 is the new 40," Vamos said.

Vamos, however, called on the Federal Government to look at others measures to increase the adequacy of people's retirement savings.

Gilbert said more consultation will be needed if the proposal was to be considered by the Federal Government.