UK Retirement Age: Learn all you need to know about female and male retirement age in UK

Learn about the UK retirement age for men and women and when you can claim your State Pension. Plan your future effectively with Moneyfarm.

What is the retirement age in the UK? According to the UK government, there is no longer a general default UK retirement age. It used to be 65 but was phased out between April 6 and October 1, 2011. Since then, most people have been able to determine their own preferred age at which to retire.

However, there is something called the “compulsory retirement age.” This is where an employer can enforce retirement based on jobs with law-enforced ages of retirement (e.g., fire service) or physical fitness limitations.

What is the average retirement age in the UK?

There have been calls for the government to increase the State Pension age in the UK to 70 by 2046 to help control the cost of rising State Pension payments.

The average retirement age in the UK has been on the rise since the mid-1900s. As of 2024, the average retirement age in the UK for male workers is 65.1. The average retirement age in the UK for female workers is 64. There are different ages at which you can access your pensions, whether we’re talking about the State Pension, workplace pension, or personal/private pensions.

What is the UK State Pension, and how can you find your specific retirement date?

The State Pension is a regular payment that the UK government makes to people once they reach the State Pension age (SPA). It was first introduced in 1908. It used to be a two-tier system—the full basic pension based on whether you’d made 30 years’ worth of NI contributions and the additional State Pension according to the level of your NI contributions.

Today, the new State Pension is a single-tier system, with the amount you receive dependent solely on your NI record and the number of qualifying years of contributions you have made.

Regardless of your retirement age in the UK, the current SPA for men and women is 66.

Refer to the government’s State Pension age timetables to determine your specific due date for starting to receive your state pension.

Recent legislation changes affecting UK Retirement age

In terms of State Pension history, the gender difference in SPA was only applicable until 2018. Before then, the State Pension age for women was 60. The Pensions Act 2011 was responsible for accelerating the timetable for equalising SPA at 65, and it was completed in November 2018. In October 2020, the age was increased further to 66.

The latest legislation, the 2023 State Pension Age Review, concluded that increasing the State Pension age from 66 to 67 was appropriate and will, therefore, be implemented between 2026 and 2028.

Regarding speculations on a further rise in SPA from 67 to 68, the government has stated it intends to hold a further review within two years of the next parliament. Until then, the current change dates (between 2044 and 2046) remain in place.

It should be remembered that for many people, the State Pension is only part of their retirement income. They may also receive money from a workplace pension, other pensions, and/or earnings.

Factors influencing changes in the UK Retirement age

It is important to understand the distinction between the retirement age in the UK and the State Pension Age. When we talk about the retirement age in the UK, we refer to the age at which an individual decides to retire. Unless you are in an age-protected occupational scheme, such as the fire service; when you retire is up to you. However, in terms of starting to receive State Pension payments, that age is mandatory and has currently been set by the UK government at 66 – due to change to 67 between 2026 and 2028.

The factors influencing changes in the State Pension age and some people deciding to remain longer at work include human life expectancy. It has increased over time, from 78.5 years in 1948 to 81.7 years for men and 85.1 years for women in 2022 (according to Statista). Therefore, it is necessary to amend the pension age to monitor the number of people above SPA in the UK and keep it in check. The pension age for men and women may change again due to life expectancy and other economic factors, such as the state of the economy, cost of living, and availability of private pensions.

Whether talking about the retirement age for men in the UK (or women), choosing when to retire is a personal choice, and there is no right or wrong age. However, economic variables may have an impact on your choice. A pension guide can help you to understand your options and make the best decision for your individual circumstances.

Comparisons of retirement age across different professions in the UK

The average retirement age here in the UK varies by profession, For example, for doctors, it’s 59.6, whereas for teachers, it’s between 55 and 60. Some professions have standard set ages. For the armed forces, firefighters and police, it’s 60, but with an option for taking earlier retirement on a reduced profession-provided pension.

Some professions are better than others with regard to making it possible to secure an early UK retirement age. Below is a table showing some of the best:

Data courtesy of the Retirementline.uk website

Can you retire before the state pension age and still claim state pension?

Until April 2011, SPA was synonymous with the UK retirement age. This meant people were made to retire when they reached 65 and qualified for the State Pension. This imposition no longer exists. As previously stated, the current retirement age is 66, but if you were born after April 5, 1960, you’re looking at a phased increase in SPA to 67 and eventually 68. However, you can start receiving your private or workplace pensions at an earlier age, depending on your scheme.

You can take early retirement any time before State Pension age. However, the earliest age you can retire in the UK and access most personal or workplace pensions is 55. But, to reiterate, if you retire at 55, you will not be able to claim your State Pension. You can only start claiming it when you reach SPA, regardless of whether you have retired. In other words, the UK retirement age and the State Pension age are independent of each other.

The impact of early retirement on pension benefits

While for many, early retirement is a sought-after goal, the earlier you take it, the more it can reduce your potential pension pot size.

When considering men’s retirement age in the UK (and the same goes for women’s retirement age in the UK), in terms of the earliest age at which you can stop working, it must be understood that private pensions (including workplace pensions and SIPPs) are designed as long-term investments. The bigger the contributions and the longer they are left to allow compound interest to do its job, the better.

It’s the same with the State Pension. The more full qualifying years you have on your NI contributions record, the more pension you will get, and conversely, the fewer qualifying years you have, the less pension you will receive.

Raising the State Pension age: pros and cons

The State Pension age debate is complicated, with benefits and drawbacks. Raising it has pros and cons.

The advantages (pros) of raising State Pension age

• Financial burden: If the State Pension age rises, it will help to reduce the financial burden on the government’s pension system when the economy is underperforming, as people will take longer to reach the state pension age.
• Adequate workers: A later State Pension retirement age in the UK will increase the size of the workforce, boosting the economy and reducing unemployment. It will help to ensure there are adequate workers to support the growing number of state pensioners.
• Active Employment: Raising the State Pension age could help people stay employed and possibly be active for longer.

The disadvantage (cons) of raising the State Pension age

• Some people will view an age increase as an infringement on government-supplied benefits.
• If you find yourself out of work in your 60s, are struggling to find employment, and have gaps in your NI record of qualifying year contributions, any prolonged period of unemployment will make “catch up” much harder, and you could end up with less State Pension when you are of age.
• If you are a low earner, any increase in SPA could mean you have to carry on working longer.

The Pros and cons of an earlier UK retirement age

If you decide to take early retirement, this, too, has its advantages and disadvantages.

The advantages (pros) of earlier retirement

• You have a chance to enjoy a longer retirement if that is your desire.
• You’ll be able to devote more time to family and friends.
• You’ll have more time to pursue hobbies and interests.

The disadvantages (cons) of earlier retirement

• Retiring early will mean that your private/workplace pension pots will have to support you for more years in retirement.
• If too many people decide to take early retirement, it will reduce the size of the UK workforce which could adversely affect the UK economy.
• A longer retirement period increases the chances of cost-of-living rises, which will put more strain on retirement finances. You might have to live more frugally and even run out of money while you wait for your State Pension to kick in at whatever age that might be.

Deferring your state pension

You can postpone claiming your State Pension once you make it to State Pension age. If you do choose not to claim it, it will automatically be deferred. However, deferring State Pension is a one-time decision; once you have taken it, you won’t be able to defer it again.

If you reach SPA on or after April 6, 2016, and defer your claim for at least 9 weeks, you get a weekly increase in pension.

How much state pension will you get if you defer?

How much state pension will I get at 66? The full new State Pension rate is £221.20 per week, and the full basic State Pension rate is £169.50 per week. However, how much State Pension you will receive will depend on your National Insurance contributions. The full number of qualifying years will net you the full new State Pension rate of £221.20 per week. You can check your National Insurance contributions record to find out how many qualifying years you have.

If you reach SPA on or after 6 April 2016, your pension increases by 1% for every 9 weeks you defer. A 52-week deferral will increase the full amount by 5.8%. For every 52 weeks of deferral, you will get an extra £12.82 (5.8% of £221.20) a week, which amounts to £234.02 per week.

If you reached SPA before 6 April 2016, your pension increases by 1% for every 5 weeks you defer. You must defer for a minimum of 5 weeks for higher weekly payments. A 52-week deferral will increase your pension amount by 10.4%. For instance, the full pension with a 52-week deferral will give you an extra £17.62 (10.4% of £169.50) per week. So, in total, you will receive £187.12 per week.

The extra State Pension payment is paid with the regular State Pension. If you reach pensionable age before April 6, 2016, the extra amount can be claimed as a one-time lump sum or as larger weekly payments. You can claim the one-time lump sum payment with 2% interest above the Bank of England base rate if the State Pension is deferred for at least 12 months.

Bear in mind that an annual increase in your State Pension may increase the extra amount paid. Therefore, if you know you will defer it, you should factor the extra amount from the deferral and other pensions into your retirement planning.

How to calculate your specific retirement date

It is important to know how much you’ll receive from your State Pension so you can plan your life after you retire. The amount received depends on the qualifying years of National Insurance contributions. Individuals who reach SPA after April 6, 2016, must have at least ten years of NI contributions to claim the State Pension.

You can check your pension amount online. It can be calculated using various state pension calculators to get an estimate of how much you would claim.

The government website offers a forecast of the amount you’ll receive. It also provides you with information on the current triple lock, your pension credit qualifying age, when you are qualified for free bus travel, when you will get your pension, and how you can increase it. However, you can’t use the government website service if you have already started receiving your State Pension or you’ve deferred claiming it.

How to claim your State Pension

The State Pension does not get issued automatically. It needs to be claimed at least two months before you reach State Pension age. The process of claiming can either be completed online, by phone or by downloading the claim form and sending it to your local pension centre. The last two digits on your NI number determine the day your state pension is paid.

If you don’t have an early UK retirement age dream and you plan to continue working beyond your State Pension age, you can still claim your State Pension when you reach SPA. As previously advised, you also have the option to defer claiming your pension.

A SIPP or an ISA – Which is best?

While everyone should have a pension, it’s not the only way of attaining your early UK retirement age aspirations.

All UK residents who have accumulated sufficient NI contributions will receive a specific amount of new State Pension up to £221.20 per week. Recognising that this alone is not enough to fund most people’s retirement, workplace pensions and automatic enrolment were introduced.

For some people, even both pensions will not provide them with the income they need to sustain the lifestyles they wish to enjoy in retirement, so they either pay more into workplace pensions or turn to SIPPs.

The only problem with pensions, however, is that they are subject to income tax. Yes, the first 25% of your private pension pot is tax-free, but thereafter, any further income from the pot will be taxable. Depending on the size of your total income, for high earners, it means paying 40% tax and 45% if you’re in the additional taxpayer band.

If your planned retirement age is 55, it means you’ll probably be giving away a lot of money to the taxman. Perhaps investing in a stocks and shares ISA would be better?

All ISAs are tax wrappers. It means that as long as you stay within your personal ISA allowance, any contributions, fund growth, and withdrawals are all tax-free. But as attractive as this sounds, two important things must be considered. The first is risk.

Stocks and shares ISAs do carry a certain amount of risk. The size of your find can fall as well as rise. You are, however, given a choice of risk levels, from low to medium and high risk. But it should also be borne in mind that SIPPs are also investments whose values can fluctuate according to the stock markets.

Other drawbacks of ISAs include the £20,000 per annum ISA allowance and the ability to withdraw money as and when you please. If you intend to use your ISA for retirement, you need to fight the urge to make early withdrawals, as it can significantly lower the size of the final pension pot. But for some, the thought of a tax-free income outweighs the risk.

It’s very much down to the individual and is perhaps something on which you should seek independent, professional advice.

Financial planning tips for approaching retirement

The importance of planning for retirement cannot be over-emphasised, and as such, here are a few tips from Moneyfarm to help with your considerations.

• Consider the lifestyle you hope to have in retirement.
• Research how much your aspired retirement lifestyle will cost.
• Take into account your preferred UK retirement age.
• Use a pension calculator to establish how much you will need to save.
• Establish how well any pensions you might already have are performing and what their projected final pot sizes are.
• Consider other forms of investments such as SIPPs and stocks and shares ISAs.
• Start investing as much and as early as you can.

The bottom line

A default UK state retirement age no longer exists, but to be clear, what does still exist is a default State Pension age. Currently, it is 66.  It has, historically, undergone several changes and is expected to keep changing in the future.

You can retire early and claim your State Pension once you hit the State Pension age, or you can continue working even after reaching SPA. Private pension-wise, you can take 25% of your pension pot tax-free at 55. You can also make further (taxed) withdrawals at your discretion but should first consider what difference this will make financially in later life.

When planning for retirement, it is essential that you are fully aware of your SPA, the amount you’re likely to receive, your pension options, and how the tax system works so you can plan for a comfortable retirement.

FAQ

What is the retirement age in the UK?

A forced or default retirement age no longer exists in the UK. When you can retire varies based on personal circumstances and employer policies. However, the current State Pension retirement age for men and women is 66. If you decide to work past SPA in the UK, you will continue to earn National Insurance contributions while you work, which may help to increase your State Pension in the future.

Can I retire at 62 and get State Pension in the UK?

No, you have to wait until you reach the State Pension age of 66 to claim It. Retiring early before you reach SPA can impact the amount of pension you receive.

What is the best age to retire for a woman?

There is no best age to retire for women, but the average UK retirement age for women is 64.

What is the difference between a State Pension and a private pension?

The state pension is a basic pension that the government pays. A private pension is paid to you through your employer or a personal pension plan. You can have multiple private/personal pension plans and amalgamate them into one through a pension transfer, but you’re only entitled to one State Pension.