Looking to retire early?
Are you pondering early retirement? If so, it may seem like an enticing prospect, but it certainly bears thinking about.
Ask yourself these vital questions:
– How much will you need to live comfortably in retirement?
– Do you have enough in your pension pot to enjoy the lifestyle you want?
– Do you have savings or any other sources of income?
– Do you still have a mortgage or any other outstanding debt you are liable for?
– Could working for a few more years offer you increased financial security?
Concerns over later life poverty
One primary consideration needs to be the financial impact of accessing your pension too early. Research6 shows that doing so before reaching State Pension age could reduce your pot by 59% on average. Two thirds of people aged 50 to 70 who quit work or lost their job during the pandemic left the workforce earlier than expected7, meaning they may have insuffi cient funds for a longer-than-anticipated retirement. Those who now want to reenter the workforce are fi nding it difficult to get rehired. According to research from the Centre for Ageing Better, unemployed over-50s are twice as likely to be out of work for 12 months or more than their younger counterparts.
Plenty to think about
Before acting, it is always a good idea to take financial advice. To carefully consider all of your options, whatever your goals for retirement, we’re here to help you get into the best possible financial position for later life.
6 Canada Life, 2022, 7 ONS, 2022