In the UK, there is no mandatory retirement age or forced retirement age – this means you are free to continue working until your state pension age.
State pensions are government funds that people may access upon reaching certain ages, depending on their national insurance contributions.
What is the average age of retirement in the UK?
Retiring is an exciting milestone for everyone, but there are several factors to take into account when selecting your ideal retirement age. To ensure you have enough money saved and prepared to support yourself in the future, seek financial advice before making your choice.
In the UK, there is no set retirement age; therefore, you have the freedom to decide when you would like to retire from work. To get an accurate assessment of current outgoings and determine how much income is necessary, review recent bank statements and bills for an idea of what you are currently spending on daily living expenses.
You’ll also need to consider how you will replace any income from your pension pot that may have been missed out on, as well as covering any costs related to travel or hobbies in your free time. Furthermore, bear in mind that inflation can cause costs to increase over time, so be prepared for an increased budget in the future.
When planning for retirement, there are various methods to build up your savings. These include state pensions, workplace and personal pensions – which can all work in concert to provide a strong financial base for the future.
Self-employed individuals should consider setting up their own personal pension as an effective way to gain control over their finances. To do so, you’ll need to consolidate any old workplace pensions you may have and choose a plan that best meets their requirements.
It’s wise to enlist the help of a financial planner or independent retirement specialist when planning for your future, as they can offer advice on the most suitable investment options tailored to your individual situation. They may also suggest ways to save and invest your money, such as through a SIPP or ISA.
In the UK, men typically retire at 65 years of age – though this number has fluctuated over time from 63.1 in 1995 to 64.3 in 2020.
What is the men’s retirement age in the UK?
Over the past decade, the UK’s average retirement age has been increasing slowly but steadily. Although it remains significantly above 1996 levels, this age group remains far away from being fully retired.
To determine your retirement age in your area, reach out to your local council or pension provider and have a chat. They can give you all of the relevant details on when to expect retirement.
In the grand scheme of things, retirement age is only one factor that goes into calculating how much you’ll receive when you finally retire. Other elements like state pension, workplace and personal pensions all factor in to how much money you’ll take home at the end of the day.
Navigating all this can seem quite overwhelming. A sound retirement plan, however, will give you peace of mind that your money is secure no matter what the economy or employment situation may bring.
Are you feeling fortunate? Check out our pension calculator to see how much your retirement pension will be worth in years ahead.
What is the women’s retirement age in the UK?
In the UK, there isn’t a mandatory retirement age like other countries have. You make your own decisions regarding when and how soon to retire – it’s an important one! For help and guidance, talk to your financial advisor or pension specialist for guidance and recommendations.
Planning your retirement plans should include factoring in the state pension age, as this determines when you can start collecting your benefits. It would also be beneficial to seek professional advice on which type of pension should be saved for and how much money should be saved each month.
Recent changes to the state pension age include a gradual increase from 65 to 66 in December 2018 for men and October 2020 for women – this change being phased in over 10 years, providing people with ample time to prepare.
However, many women have reported feeling misled about the increase and having to work longer than expected. This has sparked campaigns by the Women Against State Pension Inequality (WASPI) calling on the government to compensate those affected.
According to a report from the Parliamentary and Health Service Ombudsman, it was believed that the government had failed to effectively communicate the change in state pension age. As such, thousands of women have had to work longer than anticipated, decreasing their expected earnings and decreasing benefits they would otherwise have received.
Women have taken action, filing claims for compensation after missing out on thousands of pounds in state pension payments. As a result, many have had to take extra work or find another career. To fight back, these women formed the group WASPI which has amassed over 193,000 signatures in support of its cause.
Though the increase in state pension age had a substantial employment effect, it’s important to remember that most 65-year-olds (around 640,000) did not cease work due solely to it. Some may have adjusted their lifestyles by saving more money than they would have otherwise; others may have retired for other reasons – such as caring for children or elderly relatives.