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?
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 personal pension savings from age 55. The government intends to raise the normal minimum pension age to 57 on 6 April 2028.
How much do I need to retire?
Just exactly when we are able to retire will always depend on if we have enough funds in place to live on. There's no doubt that the earlier you start planning the more time you'll have to build your savings and make adjustments.
You can use our retirement budget planner to help you understand your income sources and expenditure throughout retirement.
There are several ways to fund your retirement, but for many it will include the State Pension, and your own private pension provision.
1. The State Pension
The State Pension is provided by the Government and pays you a regular income in retirement.
Until fairly recently, the age that people could claim their State Pension remained constant at 65 for men and 60 for women.
But that's all changing now. As we are all living longer, the Government has decided that the State Pension age will need to change in the future.
The current state pension age for men and women is 66 with further changes in the future. Learn more about the State Pension and the new State Pension today.
2. Other pensions?
Aside from State Pensions you may hold benefits under other arrangements, such as a workplace or occupational pension scheme, or a personal 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 may be subject to an early retirement reduction or penalty.