The question of whether you retire at 60 or 65 in the UK is no longer straightforward, as the official State Pension age has shifted. For decades, the State Pension age was 65 for men and 60 for women, but this was equalised and then increased. As of September 2025, it is 66 for both genders. This means anyone relying on the State Pension must wait until at least this age, with further increases already planned.
The UK State Pension Age: A Timeline of Changes
Historically, the State Pension age was 60 for women and 65 for men. However, due to increased life expectancy and a growing pensioner population, reforms were introduced to increase and equalise the age for both genders. The rise to 66 was completed by October 2020.
Further increases are already legislated. The State Pension age is scheduled to rise to 67 between 2026 and 2028. A future rise to 68 is currently legislated to happen between 2044 and 2046, although there is speculation that this could be brought forward following government reviews. This means that for many people, waiting until 60 or 65 will mean missing out on state support for several years of their retirement.
Early Retirement with Private Pensions
While the State Pension age is fixed by law, individuals can choose to retire earlier using private and workplace pensions. This requires careful financial planning to ensure enough savings to cover the gap between retiring early and receiving state support.
- Accessing private pension pots: Under "pension freedom" rules, most people can access their private pension savings from age 55. This minimum age is also increasing and will rise to 57 from 6 April 2028. Using these funds earlier means they must last longer, potentially requiring a larger pension pot or a more conservative withdrawal strategy.
- Defined benefit schemes: For those with a defined benefit (or final salary) pension, retiring early will likely result in a reduced annual income. This is because the pension needs to be paid over a longer period. The specific rules vary by scheme.
- Other income sources: Funding early retirement often involves other income streams, such as personal savings (like ISAs), investments, or capital from downsizing a home. Some people opt for semi-retirement, working part-time to supplement their income and ease the transition out of the workforce.
Factors Influencing Your Personal Retirement Age
Deciding when to stop working depends on a variety of personal and financial factors. Your ideal retirement age may differ significantly from the official State Pension age. Considerations include:
- Financial readiness: Do your combined pension pots, savings, and investments provide enough income to support your desired lifestyle from your chosen retirement date until the end of your life? A financial advisor can help assess this.
- Health and wellbeing: For some, health issues may force an earlier retirement, while for others, good health allows them to work longer. The physically and psychologically demanding nature of some jobs can lead to early retirement.
- Lifestyle goals: Do you plan to travel extensively, take up new hobbies, or simply spend more time with family? Your retirement lifestyle will determine your financial needs. Some people need less income in later life, while others face increasing care costs.
- Economic conditions: Broader economic factors like inflation and the cost of living affect retirement spending. The value of your savings and investments can also fluctuate.
Early vs. State Pension Age Retirement: A Comparison
| Feature | Retiring Before State Pension Age | Retiring at State Pension Age (or Later) |
|---|---|---|
| Income Sources | Primarily private/workplace pensions, savings, investments, or part-time work. | State Pension becomes a key, guaranteed income source. |
| Financial Readiness | Requires careful financial planning to ensure a larger pot covers a longer period. Higher risk of funds running out. | More years to build up pension pots and savings. Lower risk of financial shortfall. |
| Pension Access | Access private pensions from age 55 (rising to 57). Defined benefit schemes may offer a reduced income. | Access State Pension and, if desired, continue working. State Pension can be deferred for higher payments. |
| Flexibility | Greater personal freedom and flexibility to enjoy an active retirement earlier. | Less personal flexibility on timing, tied to official age and reviews. Potential for a later, but more financially secure, retirement. |
| Investment Strategy | Often requires a more robust investment strategy to cover a longer retirement period. Must account for market risk. | Benefit from continued investment growth and can afford a more conservative investment strategy. |
Conclusion
Ultimately, the decision to retire is a personal one, but it is critical to understand that the government's official State Pension age is no longer 60 or 65. The current age is 66, and further increases are planned. If you wish to stop working before you can claim your State Pension, you will need to fund that period entirely from private sources. Comprehensive financial planning, including understanding your pension pots and personal savings, is essential to ensure a comfortable and secure retirement, regardless of your chosen age. Consulting a financial advisor is highly recommended to build a plan that aligns with your personal circumstances and aspirations.
