How do I know what age is best for me to retire?

When can I retire is the biggest question I get asked. Here’s a list of the steps I work through with my clients:

1. Work out what you’ll need to spend in retirement

• What will your essentials cost? Housing, food, utilities...

• Now add in the fun stuff such as holidays, hobbies, eating out. Most people spend more in the first 10 years of retirement, so be realistic!

• Here's a handy calculator to help you crunch the numbers.

2. Calculate your income in retirement

• Check your State Pension forecast at on the HMRC website.

• Tally up everything you've got in workplace and/or personal pensions.

• Find out if you have any defined benefit/final salary pensions.

• Will you have rental income, investments, or perhaps do some part-time work as well?

3. Decide how you'll access your pension (and other savings)

• Do you want to take your 25% tax-free lump sum?

• Annuity vs drawdown - Do you withdraw at your own discretion or book in a guaranteed income for a set amount of time?

• What steps can you take to make sure your retirement savings last?

4. Other things to think about...

• If you stop working at 60, you’ll need to fund the 7-year gap to 67 entirely from your pensions and savings!

• Retiring earlier means your money has to stretch further, so be cautious with early withdrawals and don’t be too risk-adverse with your investments - you don't want to stifle too much growth and end up falling victim to inflation.

• Even a couple of days of part-time work per week can make a big difference and help your savings last longer.

You can map all this out yourself, or a financial adviser or planner can help you plan for retirement and model different scenarios (retiring at 60 vs 65, downsizing, leaving an inheritance).

Hope this helps!