What’s The Best Age To Retire?

Deciding when to retire is one of life’s big choices. There’s so much to consider. It’s not all about personal preference—there are plenty of factors to think about, from your financial situation to your health and even your social life.

And with the increasing State Pension age, it’s understandable if you’re stuck wondering, ‘What’s The Best Age To Retire?’ 

Read this week’s blog to help you decide the best time to put your working life behind you and start living the retirement you’ve always dreamed of.

What is the State Pension Age in the UK?

The UK State Pension age is the age at which you can begin receiving your State Pension. Currently, this is 66 for both men and women. However, this is set to increase to 67 between 2026 and 2028 and will likely continue rising in the future due to increased life expectancy.

Knowing your State Pension age is important because it can have a big impact on your retirement plans. Being aware of when you’ll be eligible helps you make more informed choices and plan ahead with confidence.

You can easily find out your exact State Pension age by using the UK government’s online tool.

Retiring Early: Is It Right for You?

For many, the idea of retiring earlier than State Pension age is a dream. It opens opportunities to travel, pursue hobbies, or simply enjoy a slower pace of life. However, the journey toward an earlier retirement comes with both perks and challenges.

Benefits of Early Retirement

• More Free Time: Whether this is more time for yourselves or with loved ones, you have more time to do the things you want without the daily pressures of work.
• Better Health: If you’re in good health, retiring early can mean more years to enjoy an active, fulfilling lifestyle.
• Stress Reduction: Leaving the workforce earlier can reduce work-related stress and improve your overall wellbeing.

Challenges of Early Retirement

• Financial Pressure: Retiring early means you’ll need to rely on your savings for a longer time before you qualify for the State Pension. To maintain your lifestyle, it’s important to have a solid pension pot or other investments in place.
• Less Pension: The earlier you stop working, the less time you must contribute to your pension, which could lead to a reduced income in later years.
• Longevity Risk: With life expectancy increasing, you could be retired for 30 years or more. So, planning for a longer retirement is essential.

Retiring at State Pension Age: A Balanced Option

For many, retiring at the State Pension age of 66 (or 67) offers a practical middle ground. By this age, you can access your State Pension and may feel more comfortable financially thanks to years of pension contributions. But just like anything else, there are upsides and downsides to think about.

Benefits of Retiring at State Pension Age

• Financial Security: Retiring at this age means you can receive the full State Pension, as long as you’ve made enough National Insurance contributions. This can provide a steady income to support you in retirement.
• Maximised Pension Contributions: With more years of work behind you, your private and workplace pensions will likely be in a stronger position, giving you that extra financial stability you want.
• Time to Plan: Retiring at the State Pension age gives you more time to plan for your later years, ensuring you have the resources to enjoy them.

Challenges of Retiring at State Pension Age

• Health Concerns: Some people may find that by 66 or 67, they no longer have the energy or health to fully enjoy retirement.
• Work Stress: Working into your mid-60s can become stressful, especially if your job is physically or mentally demanding.

For a more detailed explanation of this, read our blog ‘Is it worth waiting until State Pension age before retiring?’ here.

Retiring Later: Is it Worth the Wait?

Some people choose to delay retirement beyond the State Pension age for various reasons such as wanting to continue earning an income, boosting their pension pot, or simply because they enjoy their job.

Retiring later can have significant financial benefits, especially if your pension savings need a little extra time to grow. However, it’s also common for the prospect of retirement to feel a bit daunting, as some may worry about having too much unstructured time ahead of them.

Benefits of Retiring Later

• Financial Flexibility: Continuing to work provides extra income, allowing you to save more or enjoy a more luxurious lifestyle in retirement.
• Keeping Your Mind Sharp: Staying active in the workforce helps you stay mentally engaged and alert.

Challenges of Retiring Later

• Health Limitations: As you age, health issues may arise, making it more challenging to enjoy the later years of your life.
• Missed Opportunities: Delaying retirement means less time to enjoy activities and travel while you’re still in good health.

Contact the experts

Hopefully, you now understand that there is no set age for retirement and that deciding when to retire is a personal choice. There truly isn’t a one-size-fits-all answer to the best age to retire.

Before making a decision, take the time to assess your personal circumstances, consider speaking with a financial adviser, and thoughtfully plan for a retirement that meets your needs. Our pension and retirement planning experts are here to sit down with you and discuss what would work best for you, taking into account your unique circumstances and goals. With over 20 years of experience helping local people retire happily and often years sooner than they expected, why not contact us today?

Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People