Just 14 per cent of people are on track to retire when and how they want, with large gaps between expectation and reality, research by savings platform Flagstone has found.

The survey findings revealed that, on average, respondents would like to retire at age 61.

However, based on current savings and contribution levels, most will not be able to retire until the age of 83 – revealing a 22-year discrepancy.

The findings are broken down by industry, with only 4.7 per cent of employees in the travel and transport sector on track to retire when planned, and with the widest average gap – 28 years – between people’s desired retirement age and their projected retirement age.

At the other end of the scale, 21.7 per cent of people working in the arts and culture sector are on track for retirement, with an average projected shortfall of 15 years between desired and actual retirement age.

The research follows the government’s announcement last July of its ‘revival’ of the 2006 Pension Commission, examining why tomorrow’s pensioners are on track to be poorer than today’s and making recommendations for change.

Furthermore, delayed retirement is not only an issue for individuals, but also for chief financial officers who are dealing with succession planning, business cost forecasting, and workforce strategy.

Discussing the research, Flagstone savings expert, Katie Horne, said: “The fact that only 14 per cent of people are on track to retire when they want to is a significant finding – not just for individuals, but for the businesses that employ them.

"A workforce that retires later than planned is a workforce that costs more than planned. Finance teams that aren’t already modelling this risk may find themselves caught out.

“This isn't a future problem – the data shows it's already here. The share of over-50s in work has grown significantly over the past three decades, and there’s little to suggest that will change any time soon.

“The businesses that will navigate this best are the ones that treat retirement planning as a financial risk to manage now, not a people issue to deal with later.”

Flagstone has recommended that finance teams plan now by taking steps such as stress-testing payroll forecasts, reviewing succession timelines, investing in employee financial wellbeing, and considering phased retirement options.

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