More than a third of workers who had hoped to retire this year are now putting their plans on hold as they cannot afford to stop working, research has revealed.

Insurer Prudential revealed that an estimated 38% of people who had planned to start drawing their pension in 2011 have delayed their plans, with just over a fifth (22%) admitting they still need a wage.

Out of those who have delayed their retirement for financial reasons, 40% think they will need to keep working until they are at least 70 to have comfortable retirement.

Most of those who have now decided they cannot afford to retire had wanted to stop working at 62 but now believe they will have to wait until they are 68 before giving it up.

The proportion of people who think they can no longer afford to retire as they had planned has increased significantly during the past 12 months, rising to 22% now from 15% in 2010.

Vince Smith-Hughes, head of business development at Prudential, said: "The research shows that people are postponing retirement to either build up their pension pots further or simply to continue in a job that they enjoy."

Copyright © Press Association 2011

Prudential