More than half (54%) of UK retirees expect to work longer than they would like, by an average of seven years, Scottish Widows has revealed.

The firm’s 20th annual retirement report said this highlights a "worrying gap" between people’s desired retirement age and the adequacy of pension savings.

In addition, over a quarter (27%) of those who have made retirement plans don’t feel that they would ever be able to afford to do it.

Head of pensions policy at Scottish Widows, Pete Glancy, said: "The growing gap in retirement outcomes and people’s quality of later life, between those who are currently retired and those who will retire in the future, is of great concern.

"However, people are starting to think about how their private pension pot might interact with their state pension entitlement to plan their retirement. But, there is still a real reliance on the state pension, and while some will be able to use their private pension pot to give them the flexibility they are looking for in terms of retirement age, it’s only starting to dawn on others that they may end up working for much longer."

The report also found that younger people would like to retire earlier, with those aged 18-29 wanting to retire at 61, and are only prepared to work until they reach 64 if necessary, which is four years short of the age at which they will be able to access their state pension.

Scottish Widows revealed that just a third (34%) of respondents think they are currently preparing adequately for retirement, while 38% are not on track for what the Pensions and Lifetime Savings Association deems as even a minimum retirement lifestyle.

This is an increase of 3% year-on-year and is equivalent to 1.2 million people.

Glancy added: "It is likely to be a long time before Britain has been saving enough to give future pensioners the outcomes they hope for. In the meantime, helping people to make the very most of what they have is going to be critical. It’s the right moment for the new government to take a holistic view on people’s financial resilience throughout life, paying particular attention to those whose retirement outcomes are predicted to be much lower.

"At present only the wealthiest tend to rely on professional support from a qualified financial adviser. As an industry, we need to find a way to give people better support in making good financial decisions at a price more savers are willing and able to pay."

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