A quarter of firms expect the number of employees working beyond retirement age to double over the next decade, according to research from Prudential.

The survey of financial directors found that 24% expect staff to work beyond retirement age in the next 10 years, with the proportion of people in the workforce who are past traditional retirement ages expected to more than double to 1.8mpeople - 6.3% of the UK’s working population.

The research also shows that in the past year, 7% of finance directors have reported an increase in the number of employees requesting to work past traditional retirement ages.

Martyn Bogira, Prudential’s director of defined contribution solutions, says: “As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made.

“The statutory retirement age for men and women is due to rise to 68 by 2046, so working longer will be a fact of life for those entering the workforce today but these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this.  Employers have told us that their staff costs could rise as their employees work for longer.

“Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension.”