Retirement before state pension age

... Credit :
Shadrach   in Alternatives

Last updated: 09 January 2020, 06:20 GMT

State pension can be claimed by an eligible person who have reached their state pension age. This was 60 for women and 65 for men, however the state pension age has been increasing. 

Last November, the changes began. That time it reached 65 for women, and now, the state pension age is rising at the same rate for both men and women. Hence, the state pension age is rising, it is set to reach 66 by October 2020 ahead of further increases to 67 and then 68. 

Canada Life has revealed a glimpse at the retirement plans of the UK, with a suggestion of a complex picture emerging of the average UK worker planning to begin accessing their private pensions before retiring from work and state pension age.

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The research suggests that age plays a significant role, with it finding that adults under 55 thinking about retirement might be too ambitious in terms of achieving their financial goals - planning to retire at the age of 63, having received their private pensions at 62.

Meanwhile, those who have already reached their 55th birthday have a different approach in mind. 

The research found that the average worker of this age group of 66 who has an expected state pension age of 66 plans to wait until they are 63 to access their savings, and not retire from work until age 67.

According to the survey of 2,000 UK adults, of which 1,222 had a private pension, the average UK worker who has an expected state pension age of 67 plans to access their pension at 62, retiring from work two years later at 64.