When is the right time to retire?

Information concerning retirement

Choosing the best time to retire

Many of the working population moving towards their peak earning years start asking the question, ‘When is the best time to retire?’. The essential truth is that people are living longer, of course this is excellent news; persons considering retirement at the age of 62 should consider if their plans are accommodating this fact.

There are potentially 3 windows of opportunity to consider for retirement: early, on time and later.

Taking early retirement

Retiring early means we will have more time to pursue hobbies and enjoy the season of hard work we’ve endured. Many of us will have been working for 30 years or more, the chance of being away from a potentially stress free environment as strong allure.

Disadvantages to retiring early:

bullet-point-blue2 A person will have accumulated less of a pension pot, meaning they will have to save more each month to boost this retirement fund.

bullet-point-blue2 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.

bullet-point-blue2 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:

bullet-point-blue2 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.

bullet-point-blue2 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

For some working past state pension age is something they choose to do simply because they want extra income and often because they enjoy what they do. The social interaction that can be obtained from our co-workers is a great benefit.

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.