It comes as the state pension age will be rising over the next few years
The pension age will soon be rising to 67.
People born in the 1960s and early 1970s are potentially leaving themselves short by underestimating how much savings they will need in retirement, research has found.
Experts found many of these people are not planning for the upcoming increase to the state pension age.
This could leave them having to work longer than they had planned if they don’t have enough savings to get by.
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The state pension age will increase to 67 by 2028.
The DWP has confirmed Brits born after March 6, 1961 (currently aged 64) will not start receiving their state pension until they are 67.
And there are fears many born in the 60s and early 70s could be left with less cash than anticipated before retirement.
These people are being advised to review their finances to ensure they are fully prepared for retirement.
Dr Ricky Kanabar from the Department of Social and Policy Sciences at the University of Bath, who led research for the new study Journal of Pension Economics and Finance, said: “Ensuring individuals adequately prepare for retirement is of paramount importance due to increasing longevity and individuals being increasingly responsible to fund later life.
“Individuals’ expectations regarding the age at which they retire and their actual behaviour is therefore critical to determining retirement savings and income adequacy.
“We are seeing a pattern where some people are working longer due to rising state pension age, but younger cohorts, especially women with an occupational pension, are adjusting their expected age of retirement downward in response to policy changes.
“The danger is that such individuals are assuming they’ll retire early and then abruptly have to change their retirement plans later in life.”
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He added: “Over-optimism regarding retirement income and reliance on access to workplace pensions from their mid-50s could lead to prime-aged workers having to make unplanned changes to later-life employment to adequately fund retirement.
“Policymakers need to better engage these groups now to improve financial resilience in later life.”