A third of people surveyed believe they cannot afford to retire when they want to, while a further 30 per cent are unsure whether they can.

The research by Canada Life found a quarter (27 per cent) of homeowners over 40 plan to access their pension savings as soon as they become available – currently aged 55 for private pensions but moving to 57.

This would trigger the Money Purchase Annual Allowance, which limits the amount you can contribute to your defined contribution pension pot each tax year to £4,000.

A further 25 per cent plan to access their private and state pension savings only once they hit state pension age.

Only 10 per cent plan to delay accessing all their pension savings while they continue to work into their retirement.

Andrew Tully, technical director at Canada Life, said: “We have seen a seismic shift away from traditional retirements, driven by economic and social trends and it simply isn’t the cliff edge event anymore.

“The desire to continue working beyond state pension age is coupled with the fact that many people are nervous about their employment prospects in later life. However, for many, this is coupled with a desire to access their pension early.

“With a significant number of people planning to access their pension savings while working there is a need to ensure that they understand the restrictions, such as the Money Purchase Annual Allowance (MPAA), on the amount they can continue to contribute to their defined contribution pension pot.”

Research by Canada Life earlier this year found more than two-fifths (43 per cent) of over 55s who are working are completely unaware of MPAA restrictions, while a further 40 per cent don’t know much about the details.