When can I retire?

Can I retire early?

When you retire is up to you. For most people, the decision comes down to whether they are in a secure enough financial position to give up work.

The earliest you can access money saved in a private pension is 55 (rising to 57 in 2028), while the state pension isn't paid until you turn 66. 

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When do people retire?

Thanks to the removal of the default retirement age in 2011, the decision about when to stop working is in your hands.

Some employers can still impose a compulsory retirement age, if they can justify it (this might apply to air traffic controllers and police officers, for example).

However, workers can no longer be forced to retire on the grounds of age alone.

In 2024, the average age of exit from the workforce reached a high of 65.7 for men and 64.5 for women, according to the DWP.

Between 2023 and 2024 the employment rate of people aged 50 to 64 years increased from 70.7% to 70.9%, but this is still down on 2019's record high of 72.5%.

The employment rate at age 65 has seen one of the largest increases over time when compared to other age groups, up from 26.9% in 2014 to 40.4% in 2024.

• Find out more: how much will I need to retire?

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When can I claim the state pension?

You'll qualify for the state pension when you turn 66. This will increase to 67 between 2026 and 2028.

The state pension age is set to rise from 67 to 68 between April 2044 and April 2046, but this could happen earlier than scheduled. 

The government is required to give at least 10 years' notice of any increase in state pension age. 

In 2025-26, the new state pension is worth £230.25 a week (£11,973 a year) at its full level.

• Find out more: how much state pension will I get?

When can I take money out of my pension?

If you have a defined contribution pension - the most common type of private pension - you can generally access your money at 55. 

The one exception is if you're seriously ill and need to access your money early. This should be arranged with your pension provider who will be able to confirm whether you are eligible.

Ignore any companies offering early pension access with the promise that they can help you dodge the large tax penalties that apply if you access your money before the age of 55. 

This is a popular tactic among scammers that can leave you with little or no money in your pot.

The age at which you can access money in private pensions will rise from 55 to 57 in 2028, so that it will remain 10 years before you are eligible for the state pension.

• Find out more: your options for accessing your pension

When can I access my final salary pension?

Final salary pensions, also known as a 'defined benefit' pensions pay you an income for life based on your final salary (or career average earnings) and the number of years you paid into the scheme. 

When you start receiving this money will depend on the individual scheme rules, so you should check with your provider. It's typically 60 or 65.

The 'normal retirement age' (the age at which you start receiving your pension) for public sector pensions will vary depending on the scheme you're enrolled in, and when you joined it.

As an example, members of the Teachers' Pension Scheme will generally be able to access their benefits at 60 if they joined before 1 January 2007, or 65 if they joined after that date. 

What effect will early retirement have on my pension?

State pension

If you stop working early, your state pension could be lower. This is because the amount you get is based on your history of National Insurance contributions.

You need 10 years' worth of National Insurance contributions to get any state pension at all, and 35 years' to get the full state pension (£230.25 a week in 2025-26).

• Find out more: how to get a state pension forecast

Private pensions

The immediate risk of cashing in a defined contribution pension early is that you run out of money in retirement.

But you could also severely limit how much you can contribute to a pension in the future by accessing your savings early.

If you withdraw cash beyond your 25% tax-free lump sum, you could trigger something called the 'money purchase annual allowance'. 

This will reduce the amount you can pay into a pension each year while still getting tax relief from £60,000 to just £10,000.

This could be a problem if, say, you want to get money out of a smaller pension but carry on working and saving for the future.

• Find out more: your options for accessing your pension