6m workers plan to work beyond retirement age

Data from its Working Late index revealed that 28 per cent of the age group, who plan to work past the state retirement age, will work for an extra six years.

Ray Chinn, head of pensions of LV=, said this could see them retiring at age 71 for men and 66 for women based on today’s retirement age.

Mr Chinn added: “The trend of people retiring well into their 60s, or even their 70s, has been increasing slowly over the last few years. The rising cost of living, low interest rates on savings and the fact that as a nation we are living longer has had a significant impact on our retirement aspirations, and the amount of money we need to live a comfortable retirement.”

The analysis also found that one in five over 50s said they expect to work for at least a decade past the current state retirement age.

Affordability is the key reason stated by 51 per cent of over 50s who plan to work beyond the state retirement age, while a further 11 per cent want to delay taking out their pension in the hope its value will increase over time.

In last year’s Working Late index, 43 per cent of those planning to work beyond state retirement age said they would do so because they enjoyed the job they do.

In 2011 this figure had fallen to 37 per cent, showing a shift towards people feeling they had to continue working because of financial need, rather than enjoyment.

The index, which was created from the results of an online poll of 1522 British adults aged over 50, also showed that 14 per cent of over 50s not yet retired intend to take professional advice about their retirement. A further 9 per cent said they had planned to take advice but are worried they can no longer afford to do so.

Mel Kenny, adviser for London-based Radcliffe & Newlands, said: “Better retirement planning increases the chances of not having to work beyond the state retirement age, but given competing demands on personal income, less employer provision and better health, people are increasingly willing to work into a greater age.

“In addition, there is always the fear of ‘what will I do when I stop work?’. Especially with more single people retiring, the loss of the social aspect of work would create a big void in many people’s lives.”