When can I retire?
'Retirement' is defined as a watershed point in our lives when we choose to leave the workforce. 'When can I retire?' is a question we've probably all asked ourselves at some point in time.
However, this should really be split into two questions – what age can I retire? and how much do I need to retire?
What age can I retire?
There's no hard and fast rules governing when we can or can't do this. However, most retirements are funded by a pension - and the current rules allow you to draw on your pension savings from age 55. The government intend to raise this age to 57 on 6 April 2028.
How much do I need to retire?
When you’re able to retire will typically depend on whether you have enough funds in place to live on. The earlier you start planning, the more time you'll have to grow and build your retirement savings.
You can use our retirement budget planner to help you understand your income sources and expenditure throughout retirement, thereby identifying any shortfall in your income requirements.
HUB Financial Solutions – one of our group companies – offers a couple of services that can support in the lead up to, and at the point of retirement.
Pension Buddy is online, free to use and provides valuable information and guidance to help you discover the essentials of planning for retirement. It will also help you to understand how financially fit you are for your life after work and how to keep on track for the retirement you want.
If you’re planning to retire within the next six months you might like to use the digital Destination Retirement service.
The service is designed to help you get excited about your life after work, and feel confident in making some of the most important decisions of your life. It provides you with a free personal retirement plan showing what your life after work might look like and how far your money may go. You can plan on your own, or with a spouse or partner.
It'll then provide expert (and fully regulated) financial advice on how to make your plan a reality, ensuring you don't pay a penny more tax than you need to. It's entirely your decision whether to put your plan into action, but if you do decide to go ahead, HUB Financial Solutions will take care of all of the hard work needed to make your plan a reality.
Ongoing fees and charges apply. Your capital is at risk and investments can go down as well as up.
When can I take money from my pension?
When you can take money from your pension will depend on your pension scheme’s rules, but you can normally start taking benefits from age 55.
It’s worth finding out if you have a ‘Normal’ or ‘Selected’ retirement date under your scheme. This will likely be later than age 55, and if you take benefits before this date your benefits you may be subject to an early retirement reduction or penalty.