Almost three-quarters (71%) of respondents believe they will need to supplement their income in retirement, according to research by financial services provider Partnership.
Its research, which surveyed 2,000 people between the ages of 45 and 65, found that, while 33% of respondents aged between 50 and 65 had put aside savings and investments to fill this gap, 39% intend to rely on continued paid employment of some sort.
The research also found that more than one in five (21%) respondents intend to delay their retirement and 18% will look to set up a small business or take on part-time work when they finish their current role.
More than half (52%) of respondents over the age of 50 believe that people should be able to work for as long as they are able and 48% felt that there should be more opportunities for part-time work in retirement.
Almost a third (30%) of over-50s believe work has social as well as financial benefits, while 16% do not believe that they will ever be in a position to fully retire and 7% said they have no pension savings at all.
Andrew Megson (pictured), managing director of retirement at Partnership, said: “With almost three-quarters of 50-65 year olds believing that they will need to supplement their pension income, it is vitally important that they make the most of the savings pot that they do have.
“Not only do people need to shop around to ascertain what deals are available, but they also need to consider whether their health or lifestyle might have an impact on their annuity income.
“While it is obviously vital to put away as much as possible over your working life, this is not always possible, so you also need to make sure that when it comes to taking out an annuity, you find the best deal for you.”
