The average retirement age rose by approximately one year between 2004 and 2010 as UK consumers extended their working life to pay for their later years.

Official figures released by the Office for National Statistics (ONS) have revealed that the average age at which men leave the labour market increased from 63.8 years to 64.6 years during the six-year period, while women's average retirement age rose from 61.2 years to 62.3 years.

Although the study highlighted the fact that the average life expectancy for those reaching state pension age is set to increase between 2021 and 2051, retirees may need significant funds to help pay for care costs in later life as their quality of life diminishes.

In 2008, UK men aged 65 could expect 9.9 years of healthy life out of a total of 17.6 years of remaining life expectancy, while women at age 65 had 11.5 years of healthy life expectancy compared with 20.2 years of life expectancy.

There were also regional discrepancies in the average life expectancy, with estimates revealing that there is a gap of more than three years in life expectancy at age 65 between the highest and lowest classes in the national statistics socio-economic classification across England and Wales.

Joanne Segars, chief executive of the National Association of Pension Funds, claimed that it is "logical" that people are spending more time at work as their life expectancy rises but insisted it did not signal the end of retirement.

She said: "Some people are choosing to work longer, but more and more find themselves stuck at work because their savings and pension are inadequate. They get a shock when they find they have to keep working while their friends retire.

"The key problem is that our society isn't putting enough aside for its older age. We need to get more people saving for their retirement, and to encourage them to start as early as possible."