More people than ever before in the UK are making the decision to retire early. Since the Covid-19 pandemic, there has been a significant uptick in the number of 50 to 64 year olds choosing to retire – a trend which has been noted by the House of Lords, prompting a report into the subsequent effect of shortages in the labour market.
Although state pensions cannot be taken until the age of 66 (rising to 68 depending on a person’s date of birth), private pensions can be drawn from the age of 55. However, many people choose to ‘unretire’ – to retire from their career, but not to stop working altogether. Sometimes this is a purely financially driven decision; sometimes it’s because the person wants to carry on working in some capacity for other reasons. But whatever the motivating factor, semi-retirement is a growing trend amongst the older working population – and one that requires careful thought and consideration.
