Nearly a third of people in their 60s and one in six of over-70s have left their pensions untouched, according to a survey of adults with defined contribution (DC) pots.
Of those who have not accessed their pension pot, nearly half (48%) of those in their 60s, and about a quarter (24%) of over 70s, say it is because they are still working, LV= found.
The LV= survey of more than 1,000 adults aged over 50 found many are also using alternative sources of income, such as cash savings, their spouse's income, the state pension or property investments.
Clive Bolton, managing director of savings and retirement at LV=, said: "It is often taken for granted, but continued good health is one of the best financial assets people can have.
"The benefits of working, such as remaining physically active and continued social interaction, can make a big difference to people's mental wellbeing and overall health in retirement.
"People are making sensible choices about retirement to ensure that they do not run out of money, but it's also really important that they also make their pension savings work for them past retirement age, so they don't miss out on the ability to generate growth above inflation for when they are ready to start to draw their pension.
"There are lots of product and fund choices available to help achieve this and it's a good idea to seek help from a financial adviser so that people can enjoy the retirement they want."
