Some 20 per cent of employees do not believe they will ever be able to retire, according to a poll.
The Working Late report commissioned by Wealth Wizards and carried out by the Centre of Economics and Business Research (CEBR) – which polled 1,000 workers and 500 companies - showed that 86 per cent of employees want to retire at or before the age of 65.
However, two thirds of the respondents stated they do not have enough pension savings, and worry that they are unable to retire at this age.
The average age that workers believe they will be able to retire at is 69.
According to the study, an ageing workforce unable to retire could cost UK employers up to £7.4bn in additional wage costs every year.
Workers expressed dissatisfaction with their employer when it comes to financial planning support for their future and retirement, and are demanding more help in order to retire earlier.
The research showed that 25 per cent of employees' state that their employer does not currently offer financial education, but that they would like the company to do so.
Almost half (49 per cent) of those aged more than 55-year-old believe employers should be required to ensure their staff are financially stable at retirement.
This increases to 59 per cent among those aged between 18 and 34-years-old.
However, workers recognise pension under-saving is partly their own fault, with 56 per cent wishing they had added more to their pension pot when they were younger.
Pension support from companies also still varies substantially - A third of respondents said their employer only matches pension contributions up to the legally required minimum of currently 1 per cent, while less than a quarter state their employer offers to match pension contributions rates of more than 3 per cent.
Currently the auto-enrolment minimum total contribution is 2 per cent - 1 per cent each from the employee and employer.
From April 2018, the minimum total contribution will increase to 5 per cent, with the employee paying 3 per cent.
One year later, it will increase again to 8 per cent, with the worker paying 5 per cent.
A total of £17bn a year will be going into workplace pensions by 2019 to 2020 because of auto-enrolment.
There are now more than nine million people auto-enrolled in a workplace pension scheme, according to figures from The Pensions Regulator.
According to Phil Blows, director at Wealth Wizards, the report suggests "that there is a disconnect between employees and employers when it comes to retirement age".
He said: "While employees want to retire at or before 65, many lack sufficient funds and are being forced to work into later life for financial reasons.
"There is a high demand from employees for their employer to do more to help them achieve their retirement objectives, and by providing financial advice now, it could save employers significant wage bills in the future."
Kay Neufeld, senior economist from Cebr, argued that employees are working longer because they have to, not because they want to.
William Burrows, retirement director at Better Retirement, said one of the most important questions people should ask themselves mid-way through their working life is if their pensions are in good shape.
He said: "If the answer is no, then action should be taken. But if the question is not asked and people bury their head in the sand no wonder their pensions are inadequate."
maria.espadinha@ft.com
