Of those deferring their retirement, two thirds say they are putting it off because they don’t have the money to retire as originally planned.

By working longer you will have more years in which your pension pot can grow, thereby increasing your income.

It will also give your money invested in a pension fund a chance to recover from the stock market crashes of last year.

But the facts are that people are living longer, and for many, the very real prospect of a 30-year retirement might inevitably force many of us to work longer.

Choosing when to retire is an important decision, and there are many factors to consider.

You need to think about buying an annuity which is the investment vehicle that converts your pension fund into a guaranteed income for life.

There are a number of factors that affect how much you get each month, which is all to do with timing.

The annuity rate at the time you take your pension will contribute to the amount you can secure. Knowing when the best rates will be available is impossible but you can make an informed decision with the help of a professional.

Annuity rates fallen over the years and more recently taken a bigger hit with every round of quantitative easing – printing more money - actioned by the Government. Quantitative easing has been a disaster for pensions, because it has artificially depressed the interest rates on these gilts which has pushed annuity rates downwards.

Your age is another factor in buying an annuity. The older you are, the better rate you are likely to secure – based on the fact that payments won’t be made for as long.

Experts say that for those planning to buy an annuity this year then it may well make sense to get on with it as all the immediate pressure on rates is downward.

Tom McPhail, head of pensions research at Hargreaves Lansdown, says: "In the longer term we may see rates recover but there is no telling by how much or how long we might have to wait.

"If investors want to stand any chance of getting the best retirement income terms for themselves then it is imperative that they shop around in the run up to retirement for the best annuity they can buy."

If your health has deteriorated by the time you finally buy your annuity, you might get a better rate because you will qualify for an enhanced annuity which pays more because the provider will not expect to have to pay out as long.

Deferring your annuity purchase might still make financial sense for you and if stock markets soar during the time your money remains invested because this should boost the value of your pension pot. However, they could fall, with disastrous effects.

A third of people in the survey said say they will continue to work because they do not really want to retire yet.

This could benefit you because you may qualify for a bigger State pension if you delay retirement and defer taking the money.

It makes more sense to do this if your combined salary and State pension tips you into the 40 per cent tax bracket, it may indeed be worth deferring your State income until you stop working and become a 20 per cent taxpayer.

It is estimated that about one in 10 defer their State pension. If you’re considering it, do your sums before you commit. You must factor in the income lost over the deferment period.