Research carried out by financial services company MGM Advantage has shown that 95 percent of people approaching retirement age, including umbrella company contractors, are not ready for the financial changes they will face. In 2008 the figure was a mere 61 percent, indicating that the credit crunch has had huge financial implications on many people. With the public sector facing massive cuts, the situation may get worse.

The results of the annual survey have shown that 1.2 million individuals aged 55 or over and still in work have not made financial plans for their retirement, although men are more likely than women to feel they are prepared. Only 15 percent of the people surveyed have taken advice from a professional regarding retirement, whilst 8 percent have approached their bank.

The majority of people are hoping to work beyond the statutory retirement age, with a third of people over 65 expecting to continue in employment until they are 71. Another 9 percent admitted that they expect to be working until they are 80 years old. Freelancing gives a flexible opportunity to many, including those at or approaching retirement age. Working through an umbrella company also enables freelancers or contractors to work without the extra burden of administration.

Craig Fazzini-Jones, director at MGM Advantage, said the situation was worrying. He added that it is essential for everyone to seek professional advice with regard to pensions and finances well before retirement. Unless people obtain advice to help them plan for retirement in advance, they will have to continue in employment for much longer to ensure adequate funds for when they do retire.

Experts advise everyone approaching retirement age to seek guidance to ensure you have sufficient funds to retire without having to rely on your property for funding.