Number of pension age employees will increase by third, says ONS

The number of people unable to retire at 65 is set to soar over the next 15 years, as poor savings and low pensions make retirement an economic luxury, say figures from the Office of National Statistics (ONS).

By 2020, 775,000 employees over the age of 65 will still be clocking on, says ONS - a third more than the 582,000 who currently do so.

"For thousands of people, their pensions will not deliver the income that they thought they would," Financial Advisor Philippa Gee told the Daily Mail.

"For many others, they have been in debt all their lives and simply cannot afford to retire. Many people in their 30s and 40s think it is fine not to save any money for the future and plan to keep on working. But what happens when their health deteriorates?"

And experts say that even those who are saving are failing to put enough away for the future - the average company pension fund for someone who retires at 65 is worth £40,000, equivalent to an annual income of just £2,000.

"For those older people who do not want to carry on working, it is critical that the Government delivers a fair and decent pension which allows them to enjoy retirement with dignity," said Adrian Thomas of Help the Aged.

"No one over state pension age - either now or in the future - should face a situation where they are economically compelled to work.

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