Sometimes in life, size matters. And when it comes to your retirement, how much you’re going to need in your pension pot is completely personal to you. It boils down to what you plan to do when you retire and how much these plans could cost you. The age when you are thinking of retiring plays a part too. In this blog we reveal five ways to maximise your retirement savings. And you can discover how your planned retirement age compares with the nation plus the three key factors that could affect when you retire.
Trying to decide what your retirement age might be can feel like plucking a number out of thin air. You know your retirement is going to happen but it’s difficult to know exactly when. So, how does your planned retirement age compare with the nation?
|Age||% Both sexes||Age||% Women||Age||% Men|
Pension Access data1
People are working longer: in fact, the number of men and women in employment2 between the age of 60 and 64 has risen considerably over the last ten years. There are now nearly double the number of women employed than there were in 1998 and 14.3% more men.
Over a quarter of men aged 65-69 are still in employment compared to 15% ten years ago.
The State Pension age is rising: for the first time in over a century since its introduction, the State Pension age has equalised at 65 for men and women. The State Pension age for women has been gradually rising since 2010 when it was 60. Despite a State Pension age of 65, our data shows that half of women (49.6%)1 plan to retire at 67.
The full amount you could receive from the State Pension is £164.35 a week (Feb ’19). When planning for your future you should consider if this will be enough for you to live comfortably on and do the things that you want to do.
There’s greater pension flexibility: introduced in 2015, the pension freedoms mean more options for over 55’s. At 55, and with the right type of pension, you have the option to take an income including taking lump sums from your pension, or you could take it in one go.
Between April 2015 when the pension freedoms were introduced, and September 2017, over 1 million personal pensions were accessed before the age of 653. And half of those that were accessed for the first time were fully withdrawn. Greater pension flexibility also means you have the option to semi-retire. If you decide to work part-time you could use your pension fund to supplement your income while you transition into full retirement.
Taking money early from your pension might not be right for you as it will leave you worse off in retirement. That’s why it makes sense to get financial advice before making any big decisions.
1Data and statistics provided by Pension Access. Planned retirement age of 3,139 clients. 1st Jan to 21st Nov 2018.
2As a proportion of the population. Gov.uk
3Financial Conduct Authority Retirement Outcomes Review: June 2018.
We are authorised and regulated by the Financial Conduct authority. This means we can help you to make the best possible decisions when it comes to your pension.