Can I Retire at 62 and Get State Pension in the UK? Complete Guide 2025

Let’s face it – many of us dream about retiring early. Escaping the 9-to-5 grind at 62 sounds pretty sweet, but there’s a big question lurking: what about your State Pension? As someone who’s spent years navigating the UK pension system, I’m gonna break this down in simple terms so you can plan your retirement properly.

The Short Answer: You Can Retire at 62, But…

You can absolutely retire at age 62 in the UK – nobody’s stopping you from quitting your job! However, you cannot claim your State Pension until you reach State Pension age, which is currently higher than 62.

This is a crucial distinction that catches many people off guard. Your ability to stop working (retire) and your eligibility to receive your State Pension are two completely different things.

What’s the Current State Pension Age in the UK?

The State Pension age has been gradually increasing in recent years:

• For men and women born between October 6, 1954, and April 5, 1960, you’ll get your State Pension on your 66th birthday
• For those born between 2026 and 2028, the State Pension age is scheduled to rise to 67

So if you’re planning to retire at 62 you’ll have a gap of at least 4 years (potentially more depending on your birth year) before your State Pension kicks in.

Private Pensions vs. State Pension: Know the Difference

This is where things get more flexible. While you can’t access your State Pension early, private pensions have different rules:

• Private pensions: UK residents can currently access their private pensions from age 55
• Workplace pensions: You’ll need to check with each scheme provider about the earliest age you can claim benefits

So if you’ve been diligent about building up private pension savings, you might still be able to fund an early retirement at 62 using these sources while waiting for your State Pension to begin

Financial Implications of Retiring at 62

If you’re seriously considering retiring at 62, you need to plan for that gap period before your State Pension kicks in. Here’s what to consider:

1. Calculate Your Gap Funding Needs

You’ll need enough savings or alternative income to cover

• Basic living expenses
• Healthcare costs
• Any remaining debt payments
• Leisure activities and travel
• Emergency fund

2. Consider Your Private Pension Options

If you’ve got private pension savings, you have several options at 62:

• Take a 25% tax-free lump sum
• Purchase an annuity for regular income
• Use drawdown to access your pot gradually
• Take your entire pot (though tax implications apply)

3. Assess Other Income Sources

Beyond pensions, consider:

• Investment income
• Rental property income
• Part-time work (yes, you can “retire” but still work part-time!)
• Savings accounts

How Much State Pension Will I Eventually Get?

When you do reach State Pension age, the amount you’ll receive depends on your National Insurance record.

For the full new State Pension, you typically need about 30 qualifying years of National Insurance contributions or credits. As of 2022, the full new State Pension is £179.60 per week, though this figure increases annually.

If you have fewer than 30 qualifying years, your State Pension will be proportionally less – potentially as low as £141.85 per week.

Is Retiring at 62 a Good Idea?

There’s no one-size-fits-all answer, but here are some indicators that retiring at 62 might work for you:

Positive Signs:

• Your debts are paid off (or very close to it)
• You have significant private pension savings
• You’ve calculated your expenses and have sufficient income sources
• You have health insurance coverage sorted
• You’ve factored in inflation and unexpected costs

Warning Signs:

• Significant outstanding debts (especially mortgage)
• Limited savings beyond your pension
• Uncertainty about healthcare costs
• Dependent family members
• No clear budget for retirement years

Working Part-Time During Early Retirement

Many folks find a middle ground – retiring from their main career at 62 but taking on part-time work. This approach has several benefits:

• Supplements income during the gap years before State Pension
• Keeps you mentally engaged and socially connected
• Reduces the draw on your private pension savings
• Potentially allows you to continue adding to your pension

In the UK, once you reach State Pension age, there’s no limit on how much you can earn while still receiving your State Pension benefits. But remember, you might still face income tax depending on your total income.

Financial Benefits Available to Older UK Residents

While waiting for your State Pension, be aware that some benefits kick in earlier:

• At age 60, you get free prescriptions and NHS eye tests
• You might be eligible for free NHS dental treatment if you’re claiming certain benefits
• Bus pass eligibility varies by region but is generally available to older residents

Real-Life Example: John’s Early Retirement Plan

Let me share about my mate John, who retired at 62 last year:

John had built up a private pension worth £350,000 by age 62. His State Pension age is 66, meaning he needed to fund a 4-year gap.

Here’s what he did:

1. Took a 25% tax-free lump sum (£87,500) from his private pension
2. Used £50,000 to clear his remaining mortgage
3. Kept £37,500 as an emergency fund
4. Set up a drawdown arrangement on the remaining £262,500 to provide about £15,000 annual income
5. Took a part-time job as a consultant earning around £10,000 per year

This combination gave John enough income to enjoy his early retirement while preserving enough of his pension pot to supplement his State Pension when it begins at 66.

Steps to Prepare for Retirement at 62

If you’re serious about retiring at 62 in the UK, here’s your action plan:

1. Check your State Pension forecast – Use the government’s online service to see what you’ll get and when
2. Review all your pension pots – Request statements from all private and workplace schemes
3. Calculate your retirement income needs – Be honest about your expenses
4. Identify any gaps – Will your income sources cover the years between 62 and State Pension age?
5. Speak with a financial adviser – Get professional advice tailored to your situation
6. Consider tax implications – Understand how your retirement income will be taxed
7. Plan for healthcare needs – Especially important if retiring early
8. Pay down debts – Aim to be debt-free before retiring

Increasing Your Pension Before Retirement

If retirement at 62 looks financially tight, there are ways to boost your pension pot:

• Make additional voluntary contributions to your workplace pension
• Increase contributions to private pensions (within annual allowance limits)
• Check if you can pay voluntary National Insurance contributions to fill gaps in your record
• Delay accessing your private pension to allow it to grow further
• Consider whether working a few more years might significantly improve your position

The Bottom Line: Can You Retire at 62 in the UK?

Yes, you can retire at 62 in the UK, but you’ll need to fund the gap until your State Pension kicks in at your State Pension age (currently 66-67 for most people).

The key is having enough savings, private pension funds, or alternative income sources to bridge that gap. With careful planning, many people successfully retire at 62 and enjoy their early retirement years.

Remember that retirement planning isn’t just about crunching numbers – it’s about creating the lifestyle you want for your later years. Sometimes working a bit longer can make a huge difference to your financial security, while for others, the freedom of early retirement is worth making some financial sacrifices.

Your Next Steps

If you’re considering retiring at 62:

1. Get a State Pension forecast from the government website
2. Review all your pension statements
3. Create a detailed budget for retirement
4. Consult with a financial adviser for personalized advice
5. Consider whether part-time work could be part of your plan

Retiring early is definitely possible with proper planning. Just make sure you’ve got your eyes wide open about the State Pension rules so you don’t face any nasty surprises!

Have you started planning for early retirement? What challenges are you facing? I’d love to hear your thoughts and experiences in the comments below!

Yes, you can likely claim both a UK pension and US Social Security, especially due to the Totalization Agreement between the two countries, which allows you to combine work credits for eligibility and prevents dual taxation. However, be aware that if you only have enough work credits to qualify for a benefit in one country, the U.S. Social Security Administration (SSA) may use your work credits from the other country to help you qualify for a benefit.