About 68% of workers intend to work beyond their standard retirement age, as they live below the breadline during retirement and want to earn additional income. One out of ten believes they will never be able to give up work, according to the study by pensions group Aviva.

About two-thirds of people aged over 55 faced financial hardship and are more worried about the tax rises than health issues.

Ros Altmann, a pension's expert and governor of the London School of Economics said, "We've had years to prepare for this demographic time bomb, but unfortunately over the last decade or more, the Government has systematically undermined pension saving and failed to prepare us properly for what's coming".

The new Government wants to phase out the default retirement age. Economists called on to raise the state pension age to 70 to help pay for state pensions and lessen the public debt.

About 1.5 million people above the standard retirement age are currently working, as per the official figures. Some of the experts opine that some workers also carry on their work beyond the existing default retirement age due to social and emotional benefits.

The urge to keep the mind active and the wish to stay out from under their partner's feet for some time and enjoying social interaction are some of the factors that are pushing people to keep working, suggested Clive Bolton, a Director for Aviva Life.