There is no obligation under Employment Law for an employer to keep an employee beyond 65. This matter was taken to the European Courts of Justice by Age Concern and the case was finally lost earlier this year. See here.
http://www.hrmagazine.co.uk/news/887679/Europe an-Court-backs-default-retirement-age-65/
However I have some good news for you because your employer appears not to have followed the Statutory Retirement Procedure. This requires that no less than 6 months before normal retirement age the employer writes to the employee outlining what options they have (if any).
Because of that, you could argue that any dismissal before the procedure is completed would be unfair, and you could take a claim to an Employment Tribunal for unfair dismissal. See here (read down a bit)
http://www.communitylegaladvice.org.uk/en/lega lhelp/leaflet15_8.jsp
Having read this I suggest you go back to the employer with these facts. The impact of this is that you can ask that they start of the process - which as you see will 'buy' you at least another 6 months from the date they start the process by writing to you. That should buy you a stay of enforced retirement until February 2010. Let us know if you want further advice on this matter.