Majority of adults think that they will need to work beyond state retirement age because they have insufficient pension funds.
According to ING’s international survey on savings, 54% of Britons now expect that they will need to keep earning in retirement.
Of these, 58% expect that they will be working in the gig economy or temporary employment.
ING questioned nearly 15,000 people in Europe, the US and Australia, including more than 1,000 Britons.
The study suggests that the notion of a traditional retirement is fast becoming a thing of the past.
It found that one in five (20%) people who have not reached retirement yet believe that they will retire after the current state pension age of 65, while 13% think that they will have to work for the rest of their lives.
The survey also found that 58% of Britons worry that they will not have enough money in retirement, while 68% expect to have a worse standard of living when they retire.
Many people also choose to work past retirement age because they are still happy to work and would like to stay in the workplace, even though they may be able to afford to retire.
The research comes just as the state pension age for men and women has been equalised to 65.
The state pension age for women was raised in November to 65 – the same as men – for the first time.
It has been steadily rising from 60 since 2011 and, in 2020, the age for both sexes will rise to 66. The state pension age is then due to increase to 67 by 2028, and 68 by 2039.
Jessica Exton, a behavioural scientist at ING, says: “These findings shine a light on the true extent of the problems many face in reaching long-term savings goals.
“Most people in the UK report that they track their day-to-day spending in some way, but many still agree that they face financial challenges, such as expecting to need to earn in retirement. And this is not a problem confined to the UK.
“Long-term planning is difficult when many are also facing short-term savings challenges, a trend seen across all countries surveyed.”
This article was originally written by our sister publication Moneywise.