Sixty is the golden age at which most Britons hope to retire, new research from Aviva has revealed, with those retiring early reporting a boost to their mental wellbeing and physical health.
With the state pension currently starting at 66, the findings show one in six (17%) people who have taken early retirement did so when they were 60, making it the most common age to stop work. A quarter (25%) of Britons also intend to retire at 60.
The desire to retire early was primarily driven by wanting to enjoy more freedom while still being physically fit and well enough to make the most of it, with nearly a third (32%) citing this as their motivator.
Financial security was the second most common factor prompting people to retire early, with just over a quarter (26%) stating that their decision was a result of being in a financially stable position.
Other drivers include reassessing their priorities and what’s important to them (23%), wishing to spend more time with family (20%), feeling tired and bored of working (19%) and finding work too taxing and stressful (19%).
Aviva said its research also found as many as one in five (20%) people targeting early retirement have set their sights on finishing work at 55.
Of those who retired early, more than two in three (68%) people say their happiness improved as a result. Nearly half (44%) say their family relationships improved and 34% said their friendships benefited.
Meanwhile, more than half reported that early retirement had delivered a boost to their mental wellbeing (57%) and half (50%) say their physical health improved.
However, Aviva said the research also showed that nearly half of early retirees found their finances worsened as a result of their retirement, with women most likely to have experienced a negative impact.
Aviva said a defined benefit salary had been key in allowing nearly a third (32%) of people to retire early, suggesting that the concept of early retirement may become harder for younger generations to achieve. However, paying off a mortgage (30%) was identified as the second most common stepping stone to retiring early, while saving little and often was cited by almost three in ten (29%) early retirees.
Alistair McQueen, head of savings and retirement at Aviva, said: “The turbulent times we’re living through have given many people pause for thought to consider their work-life balance and think more seriously about what makes them happy. Our findings suggest the dream of an early retirement is very much alive and kicking, but there are many factors to consider along the way and the current uncertainty about the future does not make this an easy decision.
“The experiences of people who’ve already reached early retirement show that small savings habits, which add up over time, are every bit as important as big gestures such as putting aside any year-end bonus.
“It’s also important to learn from the lesson that, while happiness soars in retirement, many people find their finances take the strain when they retire early and money worries are one of the biggest factors resulting in people returning to work. If you aspire to retire early, it’s vital you plan your finances to be sustainable for the long-term.”
