When is the right time to retire?

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Saying goodbye to work can be a big moment in a person’s life. But when is it the right time for you to retire? Asking yourself these four important questions could help you reach a decision.

1. How much money will I need?

Have a think about what you want your retirement to look like and how much money you’re likely to need for it. The Retirement Living Standards, by Pensions UK, can give you an idea of how much a ‘minimum’, ‘moderate’, or ‘comfortable’ lifestyle might cost.

Remember, what your retirement looks like might change over time. You may be very busy for the first few years. And as you get older, you might decide to – or need to – slow down, and the amount of money you require might drop as a result. But it’s still important to think about what your bills are likely to cost. You might also want to factor in the costs of potential care and consider whether you’ll be helping family members financially (some people help pay for grandchildren’s university fees, for example).

2. How will I fund my retirement?

Currently, you can’t start claiming your State Pension until age 66, rising to 67 by 2028 (if you’re interested, you can check when you might get it on the government’s website). So if you want to retire earlier than that, you’ll need to rely on other sources of income. 

Most people will use their pension savings to help fund their retirement. The earliest you can take money from your pension plan is usually age 55, rising to 57 from 6 April 2028. You can sometimes take your money earlier, although this is rare. 

Some people get money from other sources in retirement, including rental income, or different savings and investments.

3. Will I have enough money?

Don’t forget to check whether you’re likely to have enough to support you throughout retirement.

You could start by looking at the value of any pension plans you have. You can usually do this through your provider’s app or your online account with them. To find out how much is in your Standard Life pension plan, you can log into your account (or register if you haven’t already), or download our app.

You can then use our pension calculator to find out how much you could have in future. Remember, a pension is an investment. Its value can go down as well as up and could be worth less than was paid in. 

Don’t think your pension savings are on track for the life you want? If it’s right for you, you could consider increasing your monthly payments or making a one-off payment into your Standard Life pension plan. You may be able to do this online or on our app. If your employer set up your plan and you want to change your monthly payments, check with them to see how it works.

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Remember, if you’re using a pension plan to support you, you could run out of money if you take too much too soon. For more information about different ways to take your pension savings, you can read our guide.

The full new State Pension is currently worth £11,973 a year. To check how much money you’re on track to get, you can check the government’s website.

And don’t forget to check how other savings or investments are doing. 

4. Do I feel ready to stop working?

You need to feel comfortable with your decision to retire. You might enjoy your job and want to keep working. Some people find working is good for their wellbeing, especially if it keeps them social and active.

Or you might want to step away from work to spend time with loved ones and do things you’ve perhaps been too busy to do over your working life.

Rather than stopping work altogether, you could consider reducing your hours. Some people use their pension savings to supplement their reduced income. Keep in mind that if you take money from a plan but continue to pay in, you might trigger something called the ‘Money Purchase Annual Allowance’, which has tax implications. 

Some people stop working and later decide to go back to work, either in a similar role or in a different industry entirely.

Further help and information…

Here are a couple of other things to note. It’s important to look at the retirement date on your pension plans and check that it actually reflects when you intend to take your money. You can usually change the date if you need to. Just be aware this can impact things like investments and guarantees.

If you want some help with retirement planning, MoneyHelper can offer free money and pensions guidance. Or you might choose to get some advice from a financial adviser. MoneyHelper has information on how to find a financial adviser.

Overall, there’s no one-size-fits-all age to retire at. You need to think about what’s right for your circumstances.

 

The information here is based on our understanding in July 2025 and shouldn’t be taken as financial advice.

A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.

Standard Life accepts no responsibility for information in external websites. These are provided for general information.