01344 778990

admin@fpp-ifa.co.uk


Taking early retirement

Making the most of the next chapter in life

With increasing numbers now working past traditional retirement ages[1], stopping work can seem a long way off, especially for younger people. However, new research[2] reveals that the early retirement dream lives on. Nearly two thirds (60%) of those stopping work this year are doing so before their expected State Pension age or company pension retirement date.
The study which tracked the finances and aspirations of those planning to retire during the year ahead also found that those planning on retiring early could be facing a considerable reduction on their annual retirement income to the value of £3,394. The average expected retirement income, inclusive of savings and State Pension, for those retiring early is £18,567, compared to £21,961 for those not retiring early.

Planning to escape the daily grind
It appears that those planning to escape the daily grind early feel the most comfortable when it comes to their financial situation in retirement – with over half (56%) saying they feel financially well prepared compared with 49% of those working towards their expected retirement date. That’s reflected in the numbers taking professional financial advice – 68% of early retirees are seeking advice compared with 60% of those working until their projected retirement age.

The average age of those retiring early is 57, and early retirees will be making the most of their free time – over a third (37%) plan to take up a new hobby or sport, 27% will start voluntary or charity work and nearly a fifth (17%) are planning a long-term holiday or gap year.

Vital for funding our whole retirement
For many people stopping work early, it is not about planning to put their feet up. They want to keep busy and active by taking up hobbies, sports and charity work, and some are even planning a post-work gap year. With many of us set to live longer than ever before, it is vital to ensure we can fund our whole retirement.
The East Midlands is the early retirement capital of the UK with 72% of its retirees retiring early, closely followed by Wales (69%) and Yorkshire and the Humber (67%).

Source data:
[1] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemploy eetypes/articles/fivefactsaboutolderpeopleatwork/2016-10-01
[2] Research Plus conducted an independent online survey for Prudential between 29 November and 11 December 2017 among 9,896 non-retired UK adults aged 45+, including 1,000 planning to retire in 2018.

PENSIONS ARE A LONG-TERM INVESTMENT.

THE RETIREMENT BENEFITS YOU RECEIVE FROM YOUR PENSION PLAN WILL DEPEND ON A NUMBER OF FACTORS INCLUDING THE VALUE OF YOUR PLAN WHEN YOU DECIDE TO TAKE YOUR BENEFITS, WHICH ISN’T GUARANTEED, AND CAN GO DOWN AS WELL AS UP.

THE VALUE OF YOUR PLAN COULD FALL BELOW THE AMOUNT(S) PAID IN.

Comments are closed.

Financial Planning Partners Ltd is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 301132 http://www.fca.org.uk/register.

Financial Planning Partners Ltd Registered Address: 19 Wellington Business Park Dukes Ride Crowthorne Berkshire RG45 6LS. Registered in England & Wales, No. 04555216. Neither Financial Planning Partners Ltd nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning. The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

Please read our Privacy Statement before completing any enquiry form or before sending an email to us.