Number forced to work 'forever' on the rise

The number of people who fear they may never be able to fully retire has increased again this year, according to a new report commissioned by HSBC. Twelve per cent of those surveyed said they were worried they will never be able to afford to stop working, a rise of two per cent on 2015.

More than three-quarters of people aged over 45 dream of retiring in the next five years, said the report, entitled The Future of Retirement. However, of these, nearly three-quarters - 74 per cent - say they have not saved enough money to do so, while 18 per cent have too much debt or claim to have dependants who rely on their income.

"Modern financial pressures and the changes in pension freedoms make the need for sound financial planning more important than ever," said Caroline Connellan, of HSBC.

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Among those who have already retired, 39 per cent said their standard of living had increased despite no longer receiving a monthly salary. More than 40 per cent believed their social life improved, compared to just eight per cent who claimed it had become worse.

The research explored key issues associated with ageing populations and increasing life expectancy around the world and surveyed people in 17 countries including the UK, US, France, Egypt, Mexico, Australia, China and Argentina.

The findings hint at a growing disparity in the retirement prospects for those currently at the outset or in the middle of their careers and those that have already retired. Those who will finish work in future decades are having to cope with increased cost of living, a less accommodating property market and an increasing retirement age as the rules are amended to cope with an ageing population.

A report out last month found that households led by recently retired pensioners aged between 65 and 74 have increased their share of overall UK wealth to 19 per cent, while households led by those aged between 16 and 45 saw their share fall from 20 per cent to 16 per cent since before the financial crisis.