How to retire early

Early retirement

Let’s start by defining early retirement.

UK retirees can currently draw the State Pension from when they’re 66. That will go up to 67 in April 2028. So your early retirement age can be in your early 60s. But most people see it as beginning when you reach 55 and can start drawing on your personal or workplace pension savings. That’s going up too, to 57 in April 2028.

Taking early retirement doesn’t have to mean stopping work entirely. Many people move into more flexible, part-time roles or switch to volunteering. That can help you avoid the less attractive parts of working life, like long commutes or stressful workplaces, while still enjoying its benefits.

For some people, early retirement due to ill health takes that choice away. It creates its own, very specific challenges too. You might not have so much time to plan and build your retirement finances, and you’ll probably need to carefully plan your care and support.

What do I need to do to retire early?

Our early retirement checklist will help you see what you need to do to retire early.

Add all the above together to estimate your retirement spending.

There’s a lot to think about there. As you work through it all, you might realise that you’re all ready to retire early. If so, congratulations! And if not, you might need to revise your retirement plans, or start saving a little more money. Our FIRE movement article has some useful tips for doing that.

Can I retire early?

Taking early retirement is a big decision. To work out if and when you can retire early, you’ll need to think through a lot of things.

First, work out how much money you’ve already saved up. Add up your pension pots and track down any lost ones. Think through any other possible sources of income, or debts to pay off. Next, plan your ideal early retirement lifestyle and work out roughly how much it’ll cost to maintain it.

If you’re not sure how to find all that out, take a look at our early retirement checklist (below). It will help you see where you’re at, where you’d like to get to, and how you can plan for it. You can also listen to the early retirement episode of our podcast Rewirement, and meet our guests Gwen and Jo:

• Gwen’s husband is nine years older than her and wants to stop working at 59. She wants to retire with him so they can travel together. But has she saved enough?
• Jo’s in her 50s. She’s sold property and has a big lump sum to retire on. But will that last for the 40-plus years she could be retired for?

Benefits of saving for early retirement

To retire early, you’ll probably need to start saving early. The earlier you start saving, the harder your money can work for you and the more help you’ll get from the government and your employer.

First of all, the sooner you start to save the more potential it has to grow (though of course their value can also go down). Secondly, investing in your pension is a very tax-efficient way of saving money. That’s because it qualifies for tax relief. Your money goes straight into your pension pot, without any of it going to the government.

And finally, if you’ve got a workplace pension, your employer will also help. Depending on how much you save, they’ll match some or all of your contributions. In effect they give you extra money, over and above your normal salary payments.

Of course, if you’re self-employed, you won’t get help from an employer. But you can still make the most of tax relief by setting up and saving into a personal pension.

Having your own savings to draw on can make a big difference to your retirement lifestyle. The State Pension might only cover the basics. In the 2024/25 tax year, it’s only £221.20 a week. And you’ll probably have to wait until you’re 67 to get it.

But you might need to plan carefully to make sure you retire with the right amount at the right time. One less year of earning could mean one less year of:

• Paying into your pension
• Potential growth
• Getting those valuable employer contributions.

If you retire at 55, you could enjoy a retirement that’s longer than your working life. It’s very important to think through whether and how you can fund it.

When can I get my State Pension?

Currently you can start drawing your State Pension once you’re 66. This is set to increase to age 67 between 2026 and 2028, and will eventually rise to 68.

When can I take my private pension?

Before April 2028, you can start drawing from workplace and private pensions once you’re 55. After then, you’ll generally have to be 57 or older.

You don’t have to start drawing on your workplace or private pension pots at these ages. You could run out of money if you start drawing on them too early, so it’s important to plan that carefully. You can check out your pension pot options.

We recommend shopping around and drawing on all available guidance and advice before deciding how to access your pension pot. You can do that through a free appointment with Pension Wise, an impartial guidance service from MoneyHelper. Or you could speak to a financial adviser. If you don't have one, you can find one at Unbiased. You'll probably have to pay for their advice.