Sixty the most popular age to retire early
There are many factors that can influence when someone decides to retire. For some, it may be based on health reasons, while others may want to take advantage of government benefits or simply enjoy a more relaxed lifestyle. However, one of the most common factors that determines when people choose to retire is their age.
So, what is the most popular age to retire early? Sixty is the most popular age to retire early, according to new research[1] which reveals the key steps people have taken to embrace early retirement and examines the costs and benefits of doing so.
Wanting
to
enjoy
more
freedom
One
in four
(25%)
are
planning
to
celebrate
their
60th
birthday
by
leaving
work
behind.
With the
State
Pension
age
currently
standing
at 66,
the
findings
show one
in six
(17%)
people
who have
taken
early
retirement
did so
when
they
were 60,
making
it the
most
common
age to
make an
early
exit
from
working
life.
This is also the most popular target age for people who intend to retire early in the years ahead, with one in four (25%) planning to celebrate their 60th birthday by leaving work behind. The desire to retire early is primarily driven by ‘wanting to enjoy more freedom while still being physically fit and well enough to enjoy it.’
Embracing
a
new
lifestyle
Nearly
one in
three
people
(32%)
who have
retired
early or
plan to
do so
gave
this
reason
for
embracing
a new
lifestyle.
Financial
security
is the
second
most
common
factor
prompting
people
to
embrace
retirement.
More
than one
in four
(26%)
early
retirees
say
their
decision
was a
result
of
‘being
in a
financially
stable
position’
so they
can
afford
not to
work.
The influence of money matters is also visible in people’s choice of early retirement age. One in five (20%) people targeting early retirement have set their sights on 55 to make the transition from working life. This is likely to be influenced by their ability to access their pension savings from this age.
‘Too
taxing
and
stressful’
Other
key
factors
encouraging
people
to seek
early
retirement
include
reassessing
their
priorities
and
what’s
important
to them
in life
(23%),
wishing
to spend
more
time
with
family
(20%) or
finding
they are
either
‘tired
and
bored’
of
working
(19%) or
find it
‘too
taxing
and
stressful’
(19%).
The research suggests the impacts of early retirement are wide-ranging and broadly positive in many areas of life. Most notably, more than two in three (68%) people who have retired early say their happiness improved as a result. In terms of the world around them, 44% of early retirees say their family relationships improved and 34% reported improvements in their friendships.
Retirees
boost
to
mental
wellbeing
When
it comes
to their
health
and
wellbeing,
more
than
half
report
that
early
retirement
has
delivered
a boost
to their
mental
wellbeing
(57%)
and half
(50%)
say
their
physical
wellbeing
improved.
However,
the
findings
suggest
these
benefits
come at
a cost,
with
nearly
half of
early
retirees
finding
their
finances
worsening
as a
result
(47%).
Women
are the
most
likely
to have
felt a
negative
financial
impact
from
retiring
early
(50% vs.
44% of
men).
Across
both
genders,
only 22%
feel
they
have
benefitted
financially
from
their
decision
to
retire
early.
Stepping
stone
to
retiring
early
Among
those
people
who have
retired
early,
one in
three
(32%)
identify
having a
defined
benefit
(final
salary)
pension
among
the main
measures
that
enabled
them to
take
retirement
into
their
own
hands.
This
suggests
the
concept
of early
retirement
may get
harder
for
younger
generations
to
achieve,
with the
majority
of the
private
sector
workforce
now
saving
into
defined
contribution
pension
schemes.
However, the findings suggest that people can still take positive steps to make an early retirement possible. Paying off your mortgage (30%) is identified as the second most common stepping stone to retiring early, while almost three in ten early retirees (29%) say saving little and often was one of their main strategies. Nearly one in five (19%) say they also saved extra whenever they received a pay rise or a bonus during their working life.
The main measures enabling people to retire early or think about retiring early
32% –
Having a
defined
benefit
(final
salary)
pension
30%
– Paying
off
one’s
mortgage
29%
– Saving
little
and
often
19%
–
Saving
extra
whenever
receiving
a
pay rise
or
bonus
16%
–
Receiving
a
redundancy
payout
14%
–
Receiving
an
inheritance
Wanting
a
new
sense
of
purpose
Among
those
who take
early
retirement,
the
research
also
reveals
there is
a small
contingent
who have
returned
to work
(17%) or
envisage
themselves
doing so
in the
future
(15%).
Over one
in four
(27%)
cite the
reason
for
returning
to work
is
because
they
‘wanted
a new
sense of
purpose’,
making
this the
most
frequent
driver,
followed
by
‘missing
the
company
and
social
interactions
with
colleagues’
(26%).
However,
a
similar
number
(24%) of
early
retirees
find
themselves
heading
back to
work
having
experienced
financial
issues.
While happiness soars in retirement, many people find their finances take the strain when they retire early and money worries are one of the biggest factors resulting in people returning to work. If you aspire to retire early, it’s vital you plan your finances to be sustainable for the long-term. ν
Source
data:
[1]
https://www.aviva.com/newsroom/news-releases/2021/12/sixty-the-most-popular-age-to-retire-early/
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
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