Older workers expect to work beyond the state pension age in search of financial security in retirement, research from Standard Life has found, revealing that older workers aged 45-64 expect to retire, on average, at age 68, two years later that the current state pension age.

The research suggested that this is likely due to the desire to have the time to build a solid pot to fund the duration of their retirement, as nearly half (44 per cent) said that their level of financial security is the biggest influence on when they’ll retire.

This was ahead of health and wellbeing, cited by 41 per cent of older workers, while 30 per cent cited being happy to stop working as the biggest influence on their retirement timings.

The survey also found that people are planning to retire at a much later age than those who are currently retired, with current retirees having stopped work at the age of 61 on average.

Standard Life explained that this may be due to the responsibility for funding retirement now shifting to individuals, noting that current retirees were primarily driven to retire based on health and wellbeing (35 per cent) and feeling happy about stopping working (30 per cent), while less than a fifth (18 per cent) based their decision to retire on when they felt financially secure.

Standard Life managing director for customer, Dean Butler, stated: “People are expecting to retire later than their predecessors, allowing further time to build up their financial security to last throughout their retirement.

“In contrast, current retirees were more likely to base their decision to retire around their health and being ready to stop working, with financial security less of an influence.

"Of course, it’s yet to be seen whether the expectation of a later retirement will become a reality, but this does illustrate a real shift in mindset for people considering their plans.

“With people having to take greater responsibility to fund their retirement combined with levels of outright home ownership at the point of retirement decreasing, it’s no surprise that more people than before are considering working beyond the state retirement age in the hope of securing a stable financial position when they eventually retire.

“Recent research from think tank Phoenix Insights calculates that if everyone worked until they were 68 and saved 12 per cent of their earnings, more would be on track to reach the retirement income they expect.

“However, both saving more and working later in life will not be conceivable for everyone, and so it’s crucial that people engage with their finances as early as possible, in order to make a realistic plan for the future and be as prepared as they can be for retirement when the time comes.”

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