Almost half (44%) of British people believe they will retire by their current retirement age, despite many not having a clear financial plan in place, according to research by SmartSave.

It found that while many thought they would retire by the current retirement age of 66, rising to 67 in 2026, only 54% of those confident in an early retirement had a clear financial plan in place.

Furthermore, less than half (48%) of those aged 55 or older who expected to retire by their retirement age had a plan in place.

However, of those planning to retire early, 58% said they would continue to work in some capacity, whether that’s freelance, part time or as a contractor, after retirement.

Of those who expect to retire late, only 28% had a clear financial plan for retirement.

More than a third (37%) of those expecting an early retirement said they did not know how many pension pots they had and how much was in them, rising to 49% of those planning to retiring later.

According to the study, higher interest rates had led to 43% of Brits contributing more to their pensions, with 52% planning to finance their retirement by primarily relying on their workplace pension.

Founder and chief executive officer at SmartSave, Andy Mielczarek, said that while many Brits hope to start enjoying retirement at the earliest opportunity, it was clear that those expectations "might be a little unrealistic" for those who do not plan ahead.

"The research seems to suggest that there is a knowledge gap between saver’s expectations for retirement and their realistic prospects," he continued.

“Nobody can afford to sleepwalk through preparing for later life, and Britons need to arm themselves with all the tools and resources at their disposal to secure for themselves the brightest possible future.

"Having a robust long-term strategy, checking up on pension pots regularly, and taking advantage of the best savings rates on the market can provide the leg up that these people need.

"The financial sector needs to do more to educate people about their financial wellbeing. Working with savers to help them fully understand their finances and establish healthy, lasting saving habits is an imperative for financial institutions, all of whom have a responsibility to help their customers make their retirement dreams possible."

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