Thousands of workers have been forced to delay their retirement for financial reasons over the last five years, according to a study by Saga, a company which offers a variety of products and services to those aged over 50, reports The Daily Mail.

With greater numbers of older workers remaining in the job market as a result of financial pressures, the subsequent impact on the labour market could be significant. Younger workers will have to compete with a larger number of older workers, which could limit their opportunities for advancement and conceivably limit their earning potential.

The current retirement ages for British workers are 65 for men and 63 for women. Under current plans, the age for women will match men at 65 by 2018, then both men and women will rise to 66 by 2020 and 67 by 2028. The default retirement age was abolished in 2011.

The Saga survey of more than 9,000 workers, aged predominately between 50 and 69, found that one in three respondents now expect to keep working longer than planned, with one-in-10 planning to work “a lot later” than planned.

Charities have said the study by Saga debunks the myth of a so-called 'golden generation' enjoying their gold-plated pensions and profits from property investments. They said low interest rates on savings, combined with a higher state pension age, mean many are having to work for longer.

Only 7% said they had brought forward their plans to retire over the past five years.

More than a third of those who delayed leaving their job did so for financial reasons, and one in ten said they were doing it to 'fund a better retirement'. Nearly a quarter blamed changes to the State pension age.

Caroline Abrahams, of charity Age UK, said: 'While many older people really enjoy working and benefit from all the social aspects workplaces have to offer, others who would like to retire are unable to do so.”

“Historically low interest rates, spiralling food and fuel costs, combined with a later State pension age, mean that many people looking forward to a well-deserved retirement have had to change their plans and continue working until they feel financially more secure. However, the study also found that more than a fifth of those who delayed their retirement did so because they enjoyed working,” she added.

Of those who had deferred their retirement, 44% said they planned to retain their current role and hours, while 40% planned to reduce their hours. Only 4% intended to retrain for another job.