Of those delaying retirement, only a quarter think they will be able to afford retirement by 2012, whereas 42 per cent think it will take longer than that for their retirement investments to recover.

The study also found that of those delaying their retirement, one in four fears they will never be able to retire as a result of the damage done to their pension funds by the credit crunch.

Of those who are able to retire this year, the study found that 30 per cent are public sector workers, who benefit from final salary pension schemes.

Commenting on the findings, director of DC solutions at Prudential, Martyn Bogira said: “It is a reflection of the difficult economic situation that so many workers, and particularly those in private sector roles who do not benefit from public sector final salary pension schemes, are trying to delay retirement but there are other options available.

“Even with the economy in its current depressed state, many annuity rates have performed better than many had feared and there are a number of other pension income options available, like drawdown, which can let workers delay buying an annuity until such time as the economy has started to recover.”

Mr Bogira also highlighted the importance of seeking retirement planning advice, “Now more than ever it pays to seek early retirement advice from an independent financial adviser and we would suggest that people start planning for their retirement early.”

Investment advice is also important, he added: “It is vital that those saving for retirement continually monitor their investment mix to ensure they have the right risk profile to help minimise the impact of economic fluctuations and falling stock markets.”

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