Main advice opportunities around early retirement described

The research examined how millions of people say they retired earlier than expected by surveying 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in June 2022.

Six million retirees say they retired earlier than expected and one in four said they retired at least five years earlier than expected, according to the LV= Wealth and Wellness Monitorwho also pointed out that only a third (31%) of people took early retirement because they could afford it.

However, just as many people say they were not financially ready to retire when they did, the survey showed that 30% of retirees and 37% of women said they were not in a good financial position to retire when they did.

“It is encouraging to see that a reasonable minority of people have been able to retire early because they have been able to save enough to secure the income they need when they stop working,” said LV= chief executive of protection, savings and retirement, Clive Bolton.

He added: “Early retirement is possible for people, but they need to plan ahead, take financial advice and be prepared to save large sums. However, early retirement can be a problem if it is forced on you. without time to prepare.”

Men are more likely than women (27% vs. 23%) to have retired five or more years earlier than expected, the survey finds. In addition, the main reasons given to justify early retirement are the desire not to continue working (27%), poor health or injury (25%), stress or mental health (17%), dismissal (15%), dislike of the boss or management (9%) and the responsibility of caring for a sick partner or relative (6%).

The survey figures add up to more than 100% because respondents chose multiple reasons for retiring early, the company said.

Bolton added: “Retiring early is a dream for millions of people and it is achievable for people who have been able to plan, save in a pension over a long period and have followed financial advice to help them plan their finances. .

“However, it can become a financial problem if people are forced into retirement before they have had time to prepare. People who retire early have less time to save in a pension fund and their fund needs to last longer will have reduced retirement income and be at greater risk of running out of money in retirement.

“People planning for retirement should think hard about what they want to do when they stop working. It helps to have a good idea of ​​the lifestyle you want, how much it will cost and how you will pay for it. .a financial advisor is a good way to make sure your retirement plans are on track.”