New research suggests that the average working adult in the UK plans to start taking benefits from their private pension from the age of 62, several years before the state pension kicks in at 67.
State pension age in the UK is currently 65 for both men and women, although it is set to reach 66 by October 2020 and then rise to 67 and 68 in years to come.
However, according to the report, the average UK worker plans to retire from work at 62, using private pension savings as a stopgap.
The research found that respondents currently under the age of 55 planned to access their private pension at 62, and subsequently retire at 63. Meanwhile, those aged over 55 said that they planned to wait until 63 to access their savings and wait a further four years until age 67 to retire from work.
As one of the report’s authors commented, working until you drop clearly does not appeal to the average UK worker, who has plans to slow down in their early 60s, typically retiring from work three years before the expected state pension age.
He added that the ambition to retire before the state pension age is helped by an expectation that they will begin to access their private pensions before they retire, but warned that this creates a “clear financial planning issue.”
To find out more about how Kirk Newsholme Financial Planning can help, please contact Richard Leonard at Richard.Leonard@knfp.co.uk or by calling 0113 204 4215.