More than a quarter of over-50s are set to delay their retirement and continue to work beyond the age of 65, a new study has found.

Research from Saga has revealed that 28 per cent of men and a quarter of women expect to still be in the workforce by the time they celebrate their 65th birthday.

People in their 50s based in the south-east are expected to work the longest, while their counterparts in the north-east are planning to retire earlier than anywhere else in the country.

The study also shows that the average national retirement age has increased in recent years, with the typical worker set to retire at the age of 63 years and 130 days in 2012 - 286 days later than in 2010.

This trend is set to continue in the future, with people set to work an extra two years and 186 days longer than today by 2025.

Roger Ramsden, chief executive of Saga Services, said: "While many people are working past the state pension age in order to keep up with the cost of living, some continue to work because they enjoy it and find it helps to keep them both socially and mentally active."

Unsurprisingly, 93 per cent of respondents who have not yet retired were looking to maximise their retirement income from their pension, but many are failing to take the necessary steps to do so.

For example, less than a third (30 per cent) intend to shop around for an annuity and a further 43 per cent are undecided.

Furthermore, more than half of over 50s were unaware that they were eligible for an enhanced annuity, which offers higher returns, as they suffered from certain medical or lifestyle conditions.

"It is important that those planning retirement are aware of their options, which could be the difference between retiring when they want to, as opposed to when their finances determine they need to," Mr Ramsden added.