One in five (19 per cent) of those aged 66 and over are still working, compared to 12 per cent three years ago, according to the Interactive Investor Great British Retirement Survey.
The survey polled savers across the UK, in total 5,000 nationally representative adults, and 2,500 Interactive Investor customers.
It found that the state pension is the main source of retirement income for almost half (48 per cent) of retirees.
Younger workers plan to retire earlier, while older workers are pushing back their retirement: those under 30 expect to retire at 60, while those nearing retirement (55-65) plan to retire at 67.
On average, current retirees finished work at 61. Additionally, over one quarter (26 per cent) of Gen X have no planned retirement age – up from 19 per cent in 2025.
Four in 10 (39 per cent) of respondents were unsure if their retirement savings will last throughout retirement, mainly due to rising living costs (45 per cent) and not having saved enough (22 per cent).
Camilla Esmund, head of investor campaigns at interactive investor, says: ““Without urgent action, many people across the UK are at risk of significant shortfalls in retirement and being dangerously financially exposed more broadly. We can see this across generations in our research.
“Uncertainty dominates the years leading to retirement, with more people now working into later life. The rising state pension age is pushing up retirement ages and more people over 65 are now working than in previous years. Most retirees are living on only modest incomes, and many are unsure if their retirement savings will last the distance.”
Of those taking a pension lump sum, the survey found that almost one third (31 per cent) of Gen X spent it on repaying debt and 18 per cent spent it on daily living costs, compared with 24 per cent and 13 per cent respectively in 2025.