There is no compulsory age to retire – you can retire as early or late as you like.
You can start to access your individual and workplace pensions from 55 years.
The state pension starting age varies from 63 to 68, depending on when you were born.
Aaron has been cutting hair since he left school, he tells us: “I'm passionate about what I do and I take my work seriously.” Barbering has certainly had a renaissance as of late, and Aaron’s branch has embraced the cool – with a chilled environment, vintage interior, and some of the best coffee around.
He tells us that just like his clients who come in to take care of their appearance, we also need to put away some money each month so we can look after our future selves too.
Getting to grips with pensions
Barber Aaron first learnt about pensions when he was 18; reading an article in the paper during his commute to work. Now 25, he admits: “I didn't really understand them then, and felt they were irrelevant at the time. After I read into them more, though, I learned that everyone can benefit from them.”
Our recent research found 26% of people aged 18-35 were in the dark about where to start with savings1. Aaron chats to people of all ages in his chair, and agrees that there’s certainly a generation gap when it comes to thinking about savings:
Younger people aren't as aware of what a pension actually does for you, or how to go about setting one up. The older clients are almost definitely up to date on what's happening in the "pension world" and of course, offer wise words!
So, at what age can you actually retire?
In the video, Aaron speaks about the age at which you can retire:
You can choose to retire as early or late as you like – there’s no compulsory age
You’re able to begin accessing your workplace and personal pensions from the age of 55 years old
For your state pension, you can access this from between 63 to 68 years of age, depending on when you were born
In 2028 the state pension age will rise to 67, this means people who are now aged 18 could be waiting up to 49 years to receive their state pension.”
But don’t leave your planning to the last minute
Although retirement may seem like a long way off, Aaron warns that “we can't see the path laid out for us,” and being prepared is the only way to put you in good stead for a comfortable life.
Like a fifth (22%) of unretired people who plan to work well past 652, Aaron says he wants to stay active and never ‘properly’ retire, telling us:
I intend on opening several businesses, but I can't imagine not doing anything throughout the week, even if I'm joined by a walking stick in my latter years!
Thankfully for people who aren’t as clued up about what the future holds, auto-enrolment now means much of the legwork is done by your employer, and you have the added bonus of their contributions. However, it definitely pays to know as much as you can. Aaron’s advice is simple: “Make a decision that you feel is best for you, with all information taken into account.”
The value of a pension can go up and down. You could get less than what is paid in.
Get a sneak peek into your future
Wondering what your lifestyle might be like when you retire? Use our Shape my Future tool to find out by answering a few simple questions.