Research from pensions and retirement specialist LV= highlights how millions of people have retired earlier than planned.
The LV= Wealth and Wellbeing Monitor - a quarterly survey of 4,000 UK adults – revealed that 47% (six million) retirees said they retired earlier than planned with one in four (three million) saying they retired at least five years earlier than planned
Men are more likely than women (27% vs 23%) to have retired five years or more earlier than planned.
Clive Bolton, managing director of protection, savings & retirement, said: “It is encouraging to see that a reasonable minority of people have been able retire early because they have been able save enough to secure the income they need when they stop work.
“Early retirement is possible for people but they need to plan ahead, take financial advice and be prepared to save large amounts. However, early retirement can be a problem if it is forced upon you without time to prepare.”
About a third (31%) of people retired early because they could afford but many people say they were not financially ready to retire when they did.
Bolton added: “Retiring early is a dream for millions of people and it is achievable for people who have been able to plan, save into a pension over a long period and taken financial advice to help them plan their finances.
“However, it can become a financial problem if retirement is forced upon people before they have had time to prepare. People retiring early have less time to save into a pension fund and their fund needs to last longer. They will need to accept they potentially will have a reduced retirement income and run a greater risk of running out of money in retirement.
“People planning for retirement should think hard about what they want to do when they eventually stop work. It is helpful to have a good idea of the lifestyle you want, how much it will cost and how you are going to pay for it. Consulting a financial adviser is a good way to ensure your retirement plans are on track.
“Retirement might seem a lifetime away for younger people who are concentrating on their careers, buying a home or raising a family but they can take action now to secure their retirement. The simplest option is make sure you join your company pension and save as much as you can. Making additional contributions early in your career can make a huge difference to the size of your retirement nest egg.”