When is the right time to retire?
Information concerning retirement
Choosing the best time to retire
There are potentially 3 windows of opportunity to consider for retirement: early, on time and later.
Taking early retirement
Disadvantages to retiring early:
A person will have accumulated less of a pension pot, meaning they will have to save more each month to boost this retirement fund.
The pension fund will have to last longer if they retire early. Retiring at 55 instead of 65 means the individual will need 10 more years of income from the pension fund.
State pension and other retirement benefits will not be available until the government defined state pension age is reached.
Know what to expect when retiring early.
Traditional retirement age
Whilst retirement age is not the same as state pension age which can be between the ages of 61 and 68 (depending on when someone was born and if they are male or female), it is generally regarded as being synonymous to most people.
Retiring on time for the most part allows us considerable time to appreciate a full, healthy and happy retirement.
Average age of traditional retirement is ages 61-68.
Things to consider:
There will be more time to create an increased pension fund. Putting money aside will be less of a burden, the potential of compound interest be growing their funds.
Retiring at the ‘normal’ age will enable a person to qualify for the full pension benefits and of course the state pension which will be added to the private pension.
Working later into life
Advantage in working later in life:
The most obvious advantage to retiring later is that we will have more time to save for our retirement alongside the fewer years that we will potentially require that income.
Disadvantages in working later in life:
The negative side to retiring later is of course the potential to having fewer years to enjoy retirement whilst considering the possibility of a reduced quality of life in maturer years.
Want more information?
Retirement options should never be decided on a whim, they deserve careful consideration. We believe that all our customers should receive the same service and options that we ourselves want in our retirement. If you’re unsure about what is right for you, or you simply want further information to help you make the right decision please talk to us.