What will it take?
Since the introduction of the Pension Freedoms in 2015, many people have had the option of being able to access their personal and defined contribution pensions from the age of 55. Yet it’s important to think very carefully before doing so.
It is also worth pointing out that while the current minimum retirement age is 55, this is set to rise to 57 from 2028, and to remain ten years below the State Pension age thereafter. Clearly, if retirement at 55 is on your agenda, you will need to think about other savings options such as ISAs.
Naturally, the first crucial step when considering early retirement is to consult your financial adviser about whether your wealth can realistically support you for, potentially, the next 50 years. Whilst your outgoings might potentially be lower (especially if your mortgage is paid off and the kids have moved out), bear in mind that you’ll likely need to generate at least 50-66% of your pre-retirement annual salary to live comfortably. Depending on your lifestyle, you might need considerably more.