Two-thirds of new pensioners could work beyond retirement in 2011

Nearly two-thirds (62 per cent) of those who had planned to retire in 2011 would consider postponing their pension and continuing to work in order to boost their retirement income according to figures from Prudential's Class of 2011 research.

Of those considering putting off their retirement, nearly half (46 percent) say they will definitely have to continue to work in order to supplement their pension or build up their savings further.

Prudential's Class of 2011 study surveyed people intending to retire during the forthcoming year. The findings highlight the growing trend for part-retirement in the UK as pensioners face up to the reality of funding a far longer period of retirement.

Of those initially intending to retire in 2011 but now planning to continue working, over half (53 per cent) say they would like to stay with their current employer - either working part-time or full-time - while 11 per cent plan to seek part-time work with a new employer.

The survey results also show that a third (32 per cent) of those due to retire in 2011 would consider working for up to another two years if it guaranteed them a greater retirement income. More than one in five (22 per cent) would work for another two to five years, while nearly one in ten (8 per cent) would be prepared to work for five to 10 more years to boost their retirement pot.

The Class of 2011 research does show however that not all those planning to remain in paid employment are doing so purely for financial reasons - many are happy to work on. Around 51 per cent of those willing to keep working past the standard retirement age say they do not feel ready to retire, while 54 per cent say they still enjoy working.

Vince Smith-Hughes of Prudential said:  "The only realistic option for people who want to avoid having to continue to work beyond the traditional retirement age, is to save more and to start saving earlier. Seeking advice from a financial adviser should be a prerequisite to ensuring you achieve the level of pension income you want and need.

"Since 2007 studies by Prudential have identified part-retirement as a growing trend - a trend that looks set to continue in 2011. This year will see the phasing out of the default retirement age, making it easier for those wishing to stay on at work. Additional retirement income is also becoming more important as the security of a defined benefit pension scheme disappears for many people.

"The reality is that many people do not see continuing to work as a disaster, many enjoy the social and intellectual challenges of work. Those choosing to stay at work will do so partly to supplement their retirement income but also to keep themselves occupied and mentally active."

Prudential's research also shows that one in every five of those planning to retire this year (19 per cent) are not willing to work any longer, even if that decision means they will struggle financially in years to come. Additionally just 12 percent of the Class of 2011 say that they have ruled out working beyond their planned retirement because they feel that they have already saved enough for a comfortable retirement.

The number of new pensioners considering working beyond their planned retirement age in 2011 (62 per cent) has increased since last year when 57 per cent of those questioned said that they would consider continuing to work in return for a higher retirement income.