Nearly two-thirds of those who had planned to retire in 2011 would consider postponing their pension and continuing to work to boost their retirement income, according to figures from Prudential's ‘Class of 2011’ research.

Of those considering delaying retirement, 46% said they would ‘definitely’ have to continue to work to supplement their pension or build up their savings further.

The study surveyed people intending to retire during the forthcoming year. Announcing the results, Prudential said the findings highlighted the growing trend for part-retirement in the UK as pensioners face the reality of funding a far longer period of retirement.

Of those initially intending to retire in 2011 but now planning to continue working, 53% said they would like to stay with their current employer - either part-time or full-time - while 11% planned to seek part-time work with a new employer.

The survey results also showed that 32% of those due to retire in 2011 would consider working for up to another two years if it guaranteed them a greater retirement income. Meanwhile, 22% would work for another two to five years and 8% would be prepared to work for five to 10 more years to boost their pot.

However, Prudential said the research does show that not all those planning to remain in paid employment are doing so purely for financial reasons. Around 51% of those willing to keep working past the standard retirement age say they do not feel ready to retire, while 54% say they still enjoy working.

Vince Smith-Hughes of Prudential said the only realistic option for those who want to avoid having to continue to work beyond the traditional retirement age is to save more and to start saving earlier.

“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,” Smith-Hughes said.

Research also showed 19% of those planning to retire this year are not willing to work any longer, even if that decision means they will struggle financially in years to come. Just 12% said they have ruled out working beyond their planned retirement because they feel they have already saved enough for a comfortable retirement.

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