The 2008 Benefits Outside the Square study by global financial consultants Mercer also found that more than 40 per cent of workers aged at least 50 years did not know how much funds they needed for a comfortable retirement.
The findings are based on the responses of 600 employees and 150 firms.
The report found one in four older workers are expected to defer their retirement until their 70s because they cannot afford to give up working.
This year super funds posted their first negative returns in six years and sharemarkets have turned bitter because of the financial credit crisis.
Australia's All Ordinaries index has plunged around 23 per cent since July 1 and is down more than 40 per cent from its all-time high on November 1, 2007.
Mercer Asia Pacific business leader of outsourcing business David Anderson said the dive in sharemarkets, and hence value of many super funds, would have some workers delaying the end of their working life.
"For many baby boomers, the impact of recent stock market declines on their superannuation savings means that traditional retirement is not an option," Anderson said.
"They just can't afford to stop working altogether."
Anderson said staff wanted help from their bosses in planning for their retirement.
"For employers that means facilitating financial advice and education as well as flexible working arrangements," he said.
"It's no longer enough for employers to just pay a salary and provide traditional benefits."
Nearly half of workers aged 50 and more were unhappy with the benefits their companies offered them, the report said.
Financial advice, guidance and education were the top picks for what employers should supply to prepare staff for retirement.
Increasing the financial knowledge of staff and creating more flexible arrangements at the workplace can lift productivity and how long employees stay at the firm, Anderson said.
"All too often, personal problems such as financial issues have a serious knock-on effect in the workplace," he said.
"Rather than focusing on incremental pay increases, employers should consider a solution.
"Encouraging employees from the earliest possible age to start planning their financial futures."
