The early retirement dream lives on but at what cost?
27 April 2018
- Nearly two thirds (60 per cent) of those stopping work this year are quitting before their expected state pension age or company pension retirement date
- But retiring early can mean facing a £3,400 hit on their annual retirement income
- Financial advice proves its worth for this year’s early retirees
With increasing numbers now working past traditional retirement ages, stopping work can seem a long way off, especially for younger people. However, new research from Prudential2 reveals that the early retirement dream lives on. Nearly two thirds (60 per cent) of those stopping work this year are doing so before their expected state pension age or company pension retirement date.
The unique annual study by Prudential, which tracks the finances and aspirations of those planning to retire during the year ahead and now in its eleventh year, also found that members of the Class of 2018 planning on retiring early could be facing a considerable hit on their annual retirement income to the value of £3,394. The average expected retirement income, inclusive of savings and state pension, for those retiring early is £18,567, compared to £21,961 for those not retiring early.
It appears that those planning to escape the daily grind early feel the most comfortable when it comes to their financial situation in retirement - with over half (56 per cent) saying they feel financially well prepared compared with 49 per cent of those working towards their expected retirement date. That’s reflected in the numbers taking financial advice - 68 per cent of early retirees are seeking professional advice compared with 60 per cent of those working until their projected retirement age.
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