In research published in the Labour Economics journal the IFS showed working longer helped maintain cognitive functioning and prevented the onset of physical disability among women in their early 60s.

David Sturrock, associate director at the Institute for Fiscal Studies and an author of the research, said: ‘While increasing the state pension age reduces state pension spending, thought needs to be given to the effect that later retirement can have on people's health. Our research shows that paid work can help to maintain cognitive functioning and physical mobility. This is particularly true for single women and those whose jobs involve some amount of movement. However, not all work is beneficial, with sedentary jobs being actively harmful for physical mobility.'

The benefits of work for cognition were much stronger for single women than for those with a partner, which is consistent with work being a particularly important source of social interactions for single women. While jobs that involved some amount of movement were beneficial in preventing physical disability, working longer in sedentary jobs worsened physical disability.

As well as encouraging types of work that are good for health, policymakers should consider encouraging social interaction and physical exercise in retirement, the IFS said.

Sturrock added: ‘Whether longer working is good for health also depends on what people will do once they retire – if the Government wants to promote health at older ages then encouraging social interaction and physical exercise among retirees would also be beneficial.'