The World Economic Foundation has projected that average retirement ages in OECD countries, including the UK, will need to increase by an estimated 8.4 years by 2050 to maintain the current balance between working-age and non-working-age populations.

It predicted that by 2050, the global population aged over 60 will be 2.1bn, more than double the 1 billion recorded in 2020.

It makes the prediction in a new report: ‘Longevity Economy Principles: The Foundation for a Financially Resilient Future’.

The report was published as business and political leaders gather this week at the World Economic Forum’s annual meeting held in Davos, Switzerland.

The report also suggested that upto 25% of adults over 55s would like to work but are not currently doing so. It also pointed out that women aged 65 and above received on average 26% less retirement income than men.

Catherine Foot, director of think tank Phoenix Insights, said: “The report emphasises that our economic and social fabric doesn’t yet support longer lives, a concern which has been accelerated by decades of declining birth rates.”

She warned that an ageing population presents challenges in areas such as financial security, work, skills, health, caring and saving for retirement.

Ms Foot said: “In the workplace, more can and should be done to accommodate older people in the workforce – the research shows that internationally, up to a quarter (25%) of people aged 55 and over want to work as they get older but face barriers in doing so.”

She added that the financial impact of leaving the workforce early cannot be overstated, with Phoenix Insights finding that the average wealth for 50-64 year olds who are economically inactive due to ill health is just £57,000, less than 5% of the average wealth of those who chose to retire early in the UK.

She called for more opportunities for older workers to stay in the workplace.

Ms Foot said: “We need to make radical changes in areas such as financial education, work, skills, health and caring to transform the way we respond to the opportunities of people living longer lives. That means tackling the inequalities across gender and socioeconomic classes.

"Better, longer lives should not just be the preserve of the few, but a reality for everyone.”