People in work expect to retire before they reach their state pension age, which could lead to potentially unrealistic retirement planning, according to research by Prudential.

Results show that workers of all age groups are confident about retiring before their respective stage pension ages.

However younger workers have unrealistic expectations on their retirement and how much they will have to live on.

Anyone born after 5 April 1978 will be able to claim their state pension when they are 68.

Among workers from various age groups surveyed, research found:

• those aged under 35 expect to retire before they are 64 years old (4 years before state pension age)
• those aged between 35-54 expect to retire before they reach 63 years old
• those aged 55 and over expect to have retired before they reach 62 years old.

Estimated retirement income is significantly higher among younger workers; with research highlighting that people under 35 expect an annual retirement income of £21,400.

Those aged 55 and over in work expect an average annual retirement income of £19,400, while those between 35 and 54 expect £19,600.

Stan Russell, a retirement expert at Prudential, said:

“It is encouraging to see people feeling so positive about the income they will receive in retirement. Many people look forward to giving up work and doing more of the things they enjoy.

“However, in a world where fewer people will benefit from generous final salary pensions, and everyone will have to wait longer to receive the State Pension, making plans based on any false financial expectations may lead to problems later in life.”