Twenty-three per cent of Brits will be forced to retire later than they had planned, according to new research from Life Trust.

As pensions shrink and investment fall, retirement has become a daunting prospect, says the financial services provider, and 12 per cent of adults currently working said that in light of the current economic crisis they expect to delay retirement by up to five years.

Eight per cent expect to postpone retirement by two to four years, and three per cent expect to put retirement off by one year.

However, those aged 45 to 54 appear to have the most concern on their shoulders - nearly a third expect to delay retirement, with 19 per cent planning to extend their labouring lives by five years or more. Over 55 year olds are struggling more, with 41 per cent agreeing that they would be delaying retirement, with 15 per cent looking to do this by five years or more.

"Retiring early is a privilege that was, until very recently, an ambition for many people," commented Andy Briscoe, CEO of Life Trust. "However, with worsening economic conditions coupled with increasing life spans this is now something fewer people are able to afford. This is all the more reason for people to understand the true cost of retirement and look at all the options that are available to them for financing their later years."

The report, The Cost of Retirement, which was conducted by the centre for economics and business research (cebr) for Life Trust, also found that early retirees terminating their working lives at age 50 will need £25,000 per year to fund their retirement, with the spending for an early retiree peaking at aged 60 at nearly £29,000 a year.

- Pensions Age January 2009

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