Shrinking pensions, savings, investments and house prices means older workers are plan to stay in their jobs past the retirement age.

The recession has hit the futures of older workers in the past two yeears with the number of people aged 55 and above planning to work beyond the state pension has jumping from 40 percent to 71 percent.

Financial factors are the main reason employees of all ages plan to work longer, with 71% of those aged 55 and over saying this is the case.

The findings are taken from Chartered Institute of Personnel and Development (CIPD) surveys from 2007 and 2009.

The research shows the older people get, the more likely they are to be planning to work beyond state retirement age, suggesting that reality bites as they get closer to drawing their pension. Just 30 percent of people aged between 18 to 24 plan to work beyond the state retirement age, however 52 percent of this age group said they did not know and 18 percent said no.

Charles Cotton, Reward Adviser, CIPD, said: "Employers need to review how they are helping their employees save for retirement to get value from their pension spend from 2012 onwards. With more people planning to work past 65, employers will have to accommodate older workers and motivate those who wish they could be elsewhere."