The question of 'What is the average retirement age in the UK?' is more complex than a single number. While recent statistics offer a snapshot, the figure is subject to multiple factors and long-term trends. Understanding the nuances of this average can help you with your own retirement planning.
Recent trends in retirement age
In recent years, the average age of leaving the labour market has been on an upward trend, reaching a record high for both genders from 2023 to 2024. This is largely due to demographic and policy changes, including the equalisation of the State Pension Age.
The State Pension Age and its impact
The State Pension Age is currently 66 for both men and women. It is set to increase to 67 between 2026 and 2028, and a further rise to 68 is planned between 2044 and 2046, which may be brought forward. These increases influence when many people retire, especially those with limited private pension savings.
Factors influencing retirement age
Beyond the State Pension Age, personal financial circumstances are critical, with sufficient savings often determining when someone can afford to retire. The shift from final salary to defined contribution pensions means individuals bear more responsibility for saving enough.
Your profession also plays a role. While some public sector jobs may have earlier pension ages, physically demanding work can lead to earlier retirement due to health concerns. Employment rates significantly decline after age 55.
The increase in flexible and part-time work also allows more people to continue working past traditional retirement ages, offering a gradual transition rather than an abrupt stop. Data shows a significant number of former retirees are re-entering the workforce, highlighting this trend.
Comparison of UK retirement trends (2011 vs. 2021 ONS Census data)
| Statistic | 2011 Data | 2021 Data | Change (2011-2021) |
|---|---|---|---|
| Percentage of population retired by age 65 | 68.15% (all) | 41.55% (all) | -26.6 percentage points |
| Percentage of women retired by age 65 | 73.5% | 45.1% | -28.4 percentage points |
| Percentage of men retired by age 65 | 62.8% | 38% | -24.8 percentage points |
| Retired by age 60 | >27% (all) | ~15.6% (all) | Approx. -11.6 percentage points |
Note: Data from the ONS 2011 and 2021 Censuses, cited by Audley Villages. These figures show a significant decrease in the proportion of people retired by certain ages, likely influenced by the 2011 abolishment of the Default Retirement Age (DRA).
Planning for your retirement
Given the rising average retirement age, planning is essential:
- Check your State Pension forecast and keep track of other pensions.
- Consider seeking advice from a financial professional for a personalised plan.
- If considering early retirement, build a substantial private pension; access is usually from age 55, rising to 57 from April 2028.
- Explore flexible work options for a gradual transition.
- Factor in increased life expectancy and potential rising costs when planning.
Conclusion
The average retirement age in the UK is increasing due to longer life expectancy, changes to the State Pension Age, and individual financial circumstances. This trend highlights the importance of proactive planning, saving, and considering all available pension options. While the State Pension provides a foundation, personal savings and potentially working longer, perhaps through flexible arrangements, are increasingly necessary for a comfortable retirement. The concept of retirement is becoming more adaptable, but it requires individuals to take greater responsibility for their financial future.
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