There is no default retirement age in the UK – you can retire whenever you please. Of course, you will need to decide for yourself what’s best in terms of being able to afford retirement. It might also be wise for many workers to wait to retire until after they reach state pension age – currently 66 for both men and women, but set to rise at some point between May 2026 and March 2028. You can check your state pension age online in the future if you’re unsure. As for any private pension scheme you’re a part of with your employer, you can take this at any time after you reach the Normal Minimum Pension Age (NMPA) or Protected Pension Age (PPA), which is currently 55 but will rise to 57 from 6 April 2028.
So, whilst there isn’t a retirement age, there is a retirement window with no upper age limit set as of 2024:
- 66 – Whenever You Choose (if waiting for state pension)
- 55 – Whenever You Choose (if simply relying on your private pension)
Below we’ll explore retirement age in the UK further, how retiring at an earlier age might work, and when you can access both your personal pension and state pension.
Note: The retirement recommendations in the UK are regularly reviewed and it is expected that in the future the retirement age will be pushed further and further back as the population lives longer. Check the gov.uk retirement age guidance page for the most up to date information.
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What Impacts Retirement Age Decisions?
While the retirement age in the UK is a personal choice, there are different factors as listed below that impact the decision-making process.
Financial security
Financial security is one of the first considerations when deciding the best time to retire. You should have enough savings or an income source that can sustain your present quality of life after retirement.
State pension is one guaranteed income source but it would probably be insufficient to live comfortably as you wish. It is best to have a passive income stream like rentals from private property and investments. With a passive income, you do not necessarily have to save too much before retirement.
A good retirement plan involves early planning or long-term savings while still working. Do not wait until you approach state pension age before planning to retire.
The State Pension
The state pension is another key factor. Since the default retirement age no longer exists in the UK, you can use the state pension age as a guide. The state pension age is the earliest age that you become eligible for state pension income. It is different from the age at which you qualify for a workplace or personal pension.
The present state pension age in the UK is age 66, but this expected to increase to 67 between May 2026 and March 2028, and perhaps further after this. You can calculate your state pension age online with ease. It’s worth noting that the pension credit qualifying age is also 66 in the UK. Pension credit is a benefit designed to support retirees on low income during retirement.
Health
Choosing when to retire in the UK from a health perspective is quite personal. Individuals suffering from any medical condition or long-term illness might have to think about early retirement based on their physical abilities and whether or not they can realistically continue working.
Working conditions and its effect on health are factors that can impact life expectancy. On the other hand, working until old age can be beneficial for people who enjoy their work and believe it helps them stay fit mentally and physically.
Family Commitments
Family commitments or the desire to spend more time with loved ones can impact a person’s retirement age in the UK. An early retirement affords you more time to bond with your children or grandchildren. For some people, that is very important, especially if they started working at an early age and hardly had enough time for family. Conversely, certain individuals may decide to work longer if they still need to financially support their family.
Quality Of life
Quality of life aims will also play a role. Some people are working now with the hope of travelling around the world as they get old. For such people, retirement immediately after they attain the state pension age in the UK could be viable with the right savings and pensions in place. Similarly, some people may choose to work longer in order to have more money to enjoy life after they retire late. It’s all about what’s best for them. How much pension they’ll receive and if that matches their aims for their quality of life matters.
Personal Preference
The summary of all the factors that impact the retirement age is personal preference. The best retirement age in the UK is the one that makes you happy and fulfilled. Whether you choose to work until your late 60s/early 70s or stop working after your mid 50s is largely dependent on your preferences and desired lifestyle.
Tips For Saving Enough For Retirement
For more detailed guidance read our post: How Much Do I Need To Retire UK?
Having adequate savings is important for everyone whether they plan for early or late retirement in the UK. How then do you ensure you have saved enough before reaching potential retirement age? Check out the following tips to save enough money to fund your desired retirement lifestyle.
- Start early – an early saving plan immediately after you secure stable employment lessens the financial impact and ensures you’re on the right saving path.
- Make regular contributions – decide the frequency of saving, whether daily, monthly or annually. You have to be consistent. Workplace pensions will take payments each month, but you can voluntarily contribute more if you choose.
- Consider investments – the reality of saving money for retirement is that you need a long time to save. However, trying out a low-risk investment, like stocks and shares, can yield more capital to meet your savings target sooner.
- Take advantage of tax relief – optimise tax relief and available government incentives to maximise your returns.
- Be flexible – changes in income levels and emergencies can require some flexibility to your savings plan.
- Explore pension options – consider whether a traditional or private pension is best for you and how much money you need to save each month.
- Get professional advice – speak to a financial advisor on the best strategies to achieve your savings goal ahead of retirement.
Is Retirement Age Different For Men And Women?
There is no difference in the retirement age for men and women in the UK. Although there was a gender gap that allowed men to reach state pension age earlier than women – that law was revised in November 2018. There is now a general state pension age of 66 years old for all citizens regardless of their gender. It is expected that the age would reach 67 between May 2026 and March 2028, and rise steadily from there.
What Is The State Pension?
The state pension is a core aspect of the social security system for those approaching or above the expected retirement age in the UK. The objective is to ensure that retirees have a secure retirement income that eases their financial worries after they stop working.
Aside from income, the state pension in the UK also entitles individuals to guaranteed annual benefits like free NHS sight tests, dental treatment, free bus travel with bus passes and tax incentives. The amount of state pension funds received is different for everybody and depends on factors such as the number of years of their national insurance contributions (NICs). Changes in government policies also affect the value of state pensions in the UK.
Working Beyond State Pension Age
It is possible to keep working even after you reach state pension age. When an individual decides to work beyond their state pension age in the UK, they do not pay national insurance anymore, meaning they keep more of their money, too. However, they will still have to pay tax when their total income + pension exceeds the annual tax-free personal allowance (£12,570 per year in 2024-2025 tax year).
Benefits Of Early Retirement
While it is not mandatory to retire early, there are a few benefits for those who decide to stop working at an early age.
- You enjoy more freedom and personal time to pursue hobbies, interests and activities that you may have postponed because of work schedules.
- Early retirement affords you a sufficient break from the stress of managing a full-time role.
- An early retirement age in the UK helps your mental health. Even though you stop receiving salaries and have to depend on savings or personal investments, there is ample time to rest and focus on the things you love.
- Enjoy more quality time to bond with family and friends.
Those are the benefits of early retirement age in the UK without considering the challenges and financial implications. Good planning and previous savings can help you navigate the post-retirement period comfortably, even with early retirement.
Benefits Of Later Retirement
The other side of the coin is what happens to those who retire later than the state pension age. Aside from the obvious challenge of still working hard while some are already resting, a late retirement plan has numerous benefits.
Firstly, it allows more time to hit the post-retirement savings target and get a larger pension pot. Those who fail to start planning early for retirement get the chance to do so and even retire with more benefits. It is particularly beneficial to those who are self-employed or have a variable income.
Working beyond the state pension age also provides additional opportunities for promotion and career development. That leads to higher earnings and more social benefits like networking with more people and ending their careers on a higher note.
How Will Retirement Age Change In Future Years?
While there is no forced retirement age in the UK, the legal state pension age is 66 and is set to gradually increase over the next few years. The value should be 67 by March 2028 at the latest, and it’s expected to rise again after that.
It remains to be seen whether the state pension age would increase again or not, but that decision depends on societal attitudes and economic circumstances. There is some belief that advancement in medicine is improving life expectancy and retirement age has to go up as a result.
Regardless of whatever happens, planning properly before reaching retirement age in the UK is the best way to navigate any future changes.
Summary
There is no forced age to retire in the UK and people can choose whether to keep working after reaching the state pension age or not. That decision solely depends on their personal preferences and the availability of enough savings or investments to cover their living expenses. Find what works for you and stick to a retirement plan that puts you in control, and you’ll be able to enjoy retirement.
