The UK’s leading cash deposit platform, Flagstone, has compiled a study into modern-day early retirement, finding out where in the UK want to retire early, data on the average pension pot size by age as well as further statistics on the percentage of Brits who have not thought about how many years retirement they need to fund.
Key takeaways from the study:
- 68% of Brits have not thought about how many years of retirement they need to fund
- 58% of people expect to retire between 65-69
- Manchester, Leeds and Edinburgh are the top cities most interested in retiring early
When deciding when you want or need to stop working, it’s important to calculate when you can afford to retire and if you’re ready to say goodbye to the working world for good.
60% of Britain’s labour force have retired between the ages of 65 and 69, while others choose to retire as soon as they reach the minimum pension age of 55. Remember the age you choose to retire is your decision alone – perhaps you’re financially comfortable and ready to embrace retirement, or maybe you love your job and don’t feel ready to give up work just yet. Whatever your circumstances, it’s important that you’re both financially and emotionally prepared for your next chapter.
What age Brits think they’ll retire
|Percentage of Brits who think they’ll retire in age bracket
|Less than 55
Recent industry changes
For many, retiring at 55 has been the goal since the government introduced the Pension Freedoms legislation in 2015. This allows you to access as much of your savings as you wish from a defined contributions pension scheme from the age of 55.
But from 2028 onwards the pension freedom age will increase to 57 which may affect your retirement plans. Those who are a few years away from 55 and plan to stop working may need to reconsider their financial planning for retirement, in alignment with this new legislation. Only 6% of those employed in the UK have more than one pension type – it may be worth you diversifying your investment options to reach your retirement goals.