China’s savings glut and the nation’s expanding piece of the world’s economy will constrict yields and interest rates for the foreseeable future, forcing British workers in their 20s to retire at 75, a new report by the Center for Economic and Business Research (CEBR) shows.

Low interest rates, in turn, will leave pensions underfunded, which will keep annuity rates low, according to CNBC.

“To retire at close to the standard of living that they [U.K. workers] have previously enjoyed, they will have to extend their working life and cut their number of years of retirement by working ‘til they are much older than the present retirement age,” says Douglas McWilliams, executive chairman of the economics consultancy CEBR.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

The report shows the Chinese population has 25 percent, or approximately $4.5 trillion, of global savings, an amount CEBR expects to increase.

Weak government finances following austerity will also make it problematic for U.K. workers to retire before 75, according to the report.

Moody's downgraded the credit rating of the United Kingdom from Aaa to Aa1 in February, amid concern regarding the country’s prospects for growth and increasing debt. According to CEBR, the cost of austerity will outweigh the expense of bank bailouts during the financial crisis. It estimates the cost of bailing out banks will eventually cost taxpayers 120 billion pounds ($181 billion), while the excess deficits built up since 2000 will cost the economy 1.5 trillion pounds by 2025.

“It will be well in the late 2020s at the earliest before austerity policies can be eased up. Even the [U.K.] Pensions Regulator admits that most pension schemes are underfunded and many will never be able to be fully funded while low yields persist without bankrupting their guarantors,” McWilliams notes.

“And for those on direct contribution pension schemes, the annuity yields that they are able to buy are unlikely to rise much from today’s very depressed levels. Workers could save more. But they are unlikely to do so and if they did so around the world, they would only add to the glut of savings that is a fundamental cause of the problem.”

The state pension age for men in the United Kingdom is 65, while the age for women is between 60 and 62, depending on their year of birth, according to BBC News.

Data from the Office for National Statistics show that of those men who are eligible for the state pension, 12.2 percent are still working compared with 11.6 percent of women in the same boat.

Many are still working in order to maintain their standard of living, as private pensions may not provide the security needed, BBC News explains.

In addition, of those 70 or older, 300,000 are still working, the Daily Mail reports.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.