Retirement

Retirement is the time of life when you no longer need to work to live comfortably, and can rely on passive income or savings to fund your lifestyle. The term “financial independence” and retirement are often used interchangeably. Both are achieved when you have enough combined savings, investment income, and/or pension income to cover your living expenses.

It’s hard to know exactly how much you will need in later life because everyone has different expectations and circumstances. But by planning how much you will need and working out how best to build up your pension pot, you will be in a great position for later life.

Rather than stopping work completely and fully retiring, you could choose to reduce your hours first and gradually phase out your working life. This is known as semi-retirement.

In November 2018, the State Pension age was 65 for men and women. However, this is increasing and now depends on when you were born.

The State Pension age is increasing for men and women and will reach 67 by 2028.

The State Pension age is going to be kept under review, which means that it could change again in the future.

If you don’t have enough money in your pension, it can limit your options. Bringing your pensions together could increase how much you have in your plan and give you more options. But this isn’t the right choice for everyone.