Over-55 workers expect to retire at 61 years and eight months despite the state pension age being up to 66 and seven months.
It’s a similar story for under-35s, who expect to retire at 63 and nine months despite the state pension age potentially rising to 68 by the time they reach their later years.
Stan Russell, retirement income expert at Prudential, said: “Although people of all ages are expecting to be able to retire well before state pension age, life expectancy continues to increase, with the average retirement now lasting nearly 20 years.
“It is important not to underestimate quite how long retirement savings will need to last.
“Our previous research has shown that the average retiree in 2015 is 60 years old, but I often encourage people born in the 1970s and 80s to be prepared for the fact that they are likely to be working in some form or other until they are much older.”
Russell’s views were echoed by Andrea Rozario, chief corporate officer at equity release brokerage Bower Retirement.
She said: “It’s understandable that people want to retire early but how feasible is that in reality?
“People commonly underestimate how long they are going to live – just five additional years in retirement can be very expensive when you factor in care costs.
“People need to look at all their options, one of which is equity release, when planning for retirement.”
