What Is the Best Age to Retire in the UK? The Answer Might Surprise You!

Have you been dreaming about the day you can finally hang up your work boots and enjoy your golden years? I know I have! But figuring out exactly when to retire can be a bit like knowing when to leave a party – too early and you might miss out on the fun (and money), too late and you could end up regretting it.

As someone who’s spent countless hours researching this topic, I’m excited to share what I’ve discovered about the best retirement age in the UK. Spoiler alert: there’s no one-size-fits-all answer, but there are definitely some interesting patterns worth exploring!

The Current Retirement Landscape in the UK

First things first, it’s important to understand that there is no fixed retirement age in the UK anymore. The default retirement age of 65 was abolished years ago, meaning employers can’t force you to retire just because you’ve hit a certain birthday. This gives us all much more flexibility, but also makes the decision more complicated!

Here’s what the current situation looks like:

• State Pension Age: Currently 66 for both men and women (it used to be different for each gender)
• Average Retirement Age: About 65.1 years for men and 64 years for women (as of 2021)
• Trend: The number of people working into their 70s has doubled in the past decade!

Retiring in Your 50s: The Early Bird Special

Pros of Retiring in Your 50s

If you’re fortunate enough to be able to retire in your 50s you’ll likely have

• More Energy: You’re still energetic enough to actually enjoy those bucket-list adventures!
• Better Health: Your knees can still handle those cobblestone streets in Italy and your stamina can keep up with spontaneous adventures
• Mental Wellbeing: Studies show early retirees often experience less depression and anxiety
• Life Satisfaction: Higher overall satisfaction with life
• Potentially Longer Life: Some studies have even linked early retirement to longevity

As one early retiree told me “While my friends were still chained to Zoom calls, I was sending them photos from my spontaneous Tuesday cycling trips!”

Cons of Retiring in Your 50s

But before you hand in your notice, consider these drawbacks:

• Financial Strain: The biggest challenge! You need substantial savings to fund potentially 30+ years of retirement
• Identity Crisis: Many people struggle with the sudden loss of their work identity
• Lack of Structure: After years of schedules and deadlines, unstructured time can feel disorienting
• Potential Loneliness: Your social circle might shrink if many of your connections were through work

Dr Naheed Ali warns “Aim for an income stream that covers essentials plus a cushion for unexpected care – think dental implants, knee injections or hearing aids that may arise after 60.”

Retiring in Your 60s: The Sweet Spot?

Pros of Retiring in Your 60s

Many experts consider the 60s to be the optimal decade for retirement:

• Financial Readiness: You’ve had more time to build your pension pot
• State Pension Access: You can draw your state pension from age 66
• Balance: Most studies suggest retiring between 64 and 66 strikes a good balance between health and financial security
• Better Financial Literacy: Research shows people retiring in their 60s tend to have better financial understanding
• Still Good Health: Most people in their 60s still enjoy relatively good health

Pharmacist Ana Carolina Goncalves points out: “This period generally comes before the sharp rise in health issues which people see in their late 70s.”

Cons of Retiring in Your 60s

However, there are some potential downsides:

• Potential Quicker Decline: A significant study found those who retired around 60 experienced a quicker drop in energy, mental agility, and stress-handling ability
• Missed Opportunity: You might be giving up valuable years of earning at your peak salary
• Health Benefits of Work: Some research suggests that working longer can actually keep you mentally sharper

Retiring in Your 70s: The Late Bloomers

Pros of Retiring in Your 70s

Working into your 70s might actually have some surprising benefits:

• Better Mental Health: Research links working longer to improved mental wellbeing
• Greater Life Satisfaction: Many report a stronger sense of purpose and meaning
• Lower Mortality Risk: One study showed each additional year of delayed retirement was associated with an 11% lower risk of mortality
• Financial Security: More time to build savings for a potentially long retirement
• Social Connections: Workplace relationships help combat loneliness

Retirement coach George Jerjian believes: “I think older people also have to connect with the younger people. It keeps you young by being with young people.”

Cons of Retiring in Your 70s

But working into your 70s isn’t ideal for everyone:

• Burnout Risk: Especially in high-stress or physically demanding jobs
• Health Concerns: Any health issues may be exacerbated by continuing to work
• Missed Opportunities: Less time to pursue other interests and passions
• Energy Limitations: You might not have the same energy levels for travel and activities

Studies have shown that working into your early 70s in high-strain jobs often equates with worse physical health and greater depressive symptoms.

So What IS the Best Age to Retire in the UK?

After sifting through all the research, I’ve come to a conclusion that might sound a bit frustrating: there’s no perfect age that works for everyone.

The best retirement age depends on your unique blend of:

1. Financial situation: Can you actually afford to retire?
2. Health: Are you still in good physical and mental condition?
3. Job satisfaction: Do you enjoy your work or is it causing stress?
4. Personal goals: What do you want to do in retirement?
5. Family circumstances: Do you have dependents or caring responsibilities?

According to a study by Fidelity Investments that surveyed 2,000 UK adults, the average age people expect to stop working is 59. But interestingly, the majority (86%) said they would quit when they felt old or not needed at work, and 69% wanted to leave before getting too old.

There were also notable differences between men and women – 71% of women plan on retiring at 60 or before compared with 58% of men.

Factors That Affect When You Retire

Based on research from several studies, these factors tend to influence retirement timing:

• Financial security: If your savings aren’t enough, retirement might need to wait
• Workplace culture: If you’re an overachiever who hates your job, earlier might be better
• Family considerations: Many want to be near children and grandchildren
• Pension provisions: What your expected pension income will be
• Health conditions: Any existing medical issues that affect your ability to work
• Peer pressure: When others around you are retiring
• Purpose: Whether you derive meaning and satisfaction from your work

Financial Implications of Different Retirement Ages

Let’s talk money – because ultimately, this is what determines most people’s retirement age:

The Financial Benefits of Delaying Retirement

According to research by Deloitte, Brits who delay retirement until 67 can expect an extra £162,000 over their lifetime compared to retiring earlier. And pushing back from 66 to 70 would offer another £63,500.

This makes sense when you consider:

• You have more years of earning and saving
• Your pension pot has longer to grow
• You’ll have fewer years of retirement to fund
• You might reach peak earning potential in your later working years

Research by Prudential even suggests that waiting until 70 might be optimal for maximizing your pension pot and ensuring financial security!

The Reality Check

But here’s the thing – and I’m speaking from personal experience here – money isn’t everything. I’ve seen too many people work themselves to the bone only to find their health won’t allow them to enjoy retirement.

As George Jerjian wisely points out: “Whatever money we save for retirement is not going to be anywhere near what we need. If we stop deluding ourselves that we are going to have a comfortable retirement doing nothing, the sooner we do that, the sooner we will take action.”

My Recommendations

After looking at all the evidence, here’s what I’d suggest:

If You’re Planning to Retire in Your 50s

• Start saving aggressively as early as possible
• Consider consulting a financial advisor to ensure your funds will last
• Develop hobbies and interests outside of work before retiring
• Build a social network beyond your workplace
• Consider phased retirement or part-time work

If You’re Planning to Retire in Your 60s

• Take advantage of workplace pension matching
• Make catch-up contributions to your pension
• Get clear on your expected state pension amount
• Consider working longer if you enjoy your job
• Create a detailed budget for retirement

If You’re Planning to Retire in Your 70s

• Focus on low-stress, enjoyable work if possible
• Listen to your body and health professionals
• Create strong boundaries to prevent burnout
• Save aggressively to potentially retire earlier if needed
• Ensure your work provides purpose and satisfaction

Final Thoughts

The best age to retire in the UK isn’t about hitting some magical number – it’s about finding the right balance between financial security, health, and happiness. For some, that might be 55, while others might be happily working well into their 70s.

What matters most is that you make the decision consciously rather than letting circumstances force your hand. Start planning early, be realistic about your finances, and remember that retirement isn’t an end – it’s just the beginning of a new chapter!

I’d love to hear your thoughts on retirement age. Have you already retired or are you planning to? What factors are influencing your decision? Drop a comment below and let’s chat!

Remember, while I’ve done my best to provide accurate information, everyone’s situation is unique. It’s always worth consulting with a financial advisor before making major retirement decisions.