The number of people working beyond standard retirement age is set to soar over the next few years, according to new research

Half of those over 50 who were questioned said they intended to stay in work rather than retire at the standard age, compared with the nine per cent of people over the age of retirement currently working.

A survey of 3,000 people over the age of 50 by Reed Consulting and Age Concern showed one in 10 hoped to stop work before they reached 60 and a third planned to retire before 65.

But one in four aimed to stay on until the age of 70 and an additional 23 per cent said they would continue working for as long as possible.

The poll also revealed four out of five people aged 50-plus believed their job applications had been rejected solely because of their age.

One in three believed ageism started to hit work opportunities below the age of 45.

A report by Age Concern said more than 250,000 people in London aged between 50 and the official retirement age were currently unemployed but available for work.

James Reed, of Reed Consulting, said: "Older people are much keener to work on beyond retirement age than in the past. What's more, nine out of 10 are committed to further training to ensure their skills meet employers needs.

"The major barrier to fully using these skills appears to be out-moded perceptions of what older workers can contribute.

"Yet employers simply cannot afford to maintain such perceptions into the future, as skills shortages accelerate and demographic shifts drastically cut down the number of younger workers available.

"If the commitment of older workers is fully embraced by employers, it will also transform UK economic prospects."

Swindon-based Nationwide employs around 15,000 people.

Ten per cent of the building society's workforce is over 50, up from just one per cent in the early 1980s.

According to Keith Astill, head of corporate personnel: "Our commitment to promoting a diverse workforce, in terms of age, race and gender, ensures that people are recruited from the widest possible pool and retained to achieve competitive advantage.

"Valuing the contribution of each individual is not only good for our employees, it's good for our business, too.

"Not only do they bring life experience, good judgment and wisdom, they also take great pride in their work and are able to mentor some of our younger employees.

"We actively promote equality of opportunity for all employers. Our job advertisements do not ask for unnecessary experience as this rules out younger applicants. Similarly, we avoid terms like 'youthful enthusiasm', which puts off older workers."