Nearly one in five (19 per cent) people aged 66 and over are still working, compared to 12 per cent in 2023, according to research by Interactive Investor.

The Great British Retirement Survey 2026, which polled almost 8,000 UK savers, found that almost half (48 per cent) of people aged 66 and over rely on the state pension as their main source of retirement income.

The research, now in its seventh year, is designed to provide a snapshot of the retirement landscape in the UK.

This year’s report found that 39 per cent of retirees said they were unsure whether their savings would last throughout retirement, citing rising living costs and concerns about not having saved enough.

On average, respondents expected to retire with £250,000, around £100,000 less than the £350,000 they believed was needed for a comfortable retirement.

The analysis also revealed that people aged 55 to 65 expect to retire at 67, while respondents under 30 expect to retire at 60.

The research looked at a number of areas, including the gender wealth gap, with the average defined contribution (DC) pension pot standing at £45,000 for women compared with £175,000 for men.

Also, according to the report, divorcees expected their pension wealth to be £75,000 in retirement, compared to £150,000 for single people, and £350,000 for married people.

Commenting on the research, Interactive Investor head of investor campaigns, Camilla Esmund, said the research is aimed to help shape how the pensions industry serves pension savers.

“Without urgent action, many people across the UK are at risk of significant shortfalls in retirement and being dangerously financially exposed more broadly,” she said.

“We can see this across generations in our research. Uncertainty dominates the years leading to retirement, with more people now working into later life.

"The rising state pension age is pushing up retirement ages and more people over 65 are now working than in previous years. Most retirees are living on only modest incomes, and many are unsure if their retirement savings will last the distance.

“However, we want this survey to inspire action to help encourage people to engage with their pension earlier in life, and to help inform and educate.”

The research also highlighted broader trends affecting the sector.

Ahead of pensions being brought into the scope of inheritance tax, only 28 per cent of respondents said they considered pensions as part of their estate planning, up from 25 per cent last year, while more than a quarter (26 per cent) use artificial intelligence (AI) to support financial decisions, rising to 45 per cent among Gen Z.

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