More than 40 per cent of older workers plan to carry on working into their late 60s and 70s, according to new research.
The Department for Work and Pensions (DWP) said that 25 per cent plan on working for a few years beyond being able to claim the state pension.
DWP figures, compiled from an Ipsos-MORI survey of 1,196 people born between 1945 and 1960, also revealed that 12 per cent said they will work for a long time after being eligible for state a pension.
Many of those questioned said the recession has forced them to rethink their retirement plans.
The tough economic climate may leave many people seeking alternative retirement funding to boost their pension incomes.
In turn this could lead to an increase in the popularity of equity release schemes, which allow homeowners to add to their pension income with money drawn against the value of their property assets.
Minister for pensions and ageing society Angela Eagle said: "The idea that you reach state pension age and suddenly stop work is being challenged by our generation of baby boomers, with many not feeling old enough to stop work completely.
"People want the choice to decide what’s right for them but, worryingly, many make this decision based on little or no knowledge of the financial facts."
Posted by Tom Papworth
