Can I retire at 60?

How it works

Set to 60, this runs your money forward the same way as When can I retire?: pensions and savings grow with what you pay in until you stop, then your spending comes out year by year. It tells you whether the money lasts to the age you plan to, the most you could spend a year if it does, and what it would take if it doesn’t.

Retiring at 60 is a different problem from 55. Your pension is open — 57 is the minimum age from April 2028 — so there are no bridge years waiting for it. The long stretch is the seven or eight years before the State Pension, when your pension and savings pay for everything, and your pension drawdown is taxed with nothing else using up your personal allowance.

The UK rules it uses

• The minimum pension age rises from 55 to 57 on 6 April 2028; at 60 you can draw your pension either way.
• State Pension age: 67 for anyone born between 6 March 1961 and 5 April 1977, then rising to 68 for those born from 6 April 1978 — so 7 or 8 years after 60. A government review may change the later steps.
• Income tax on withdrawals at 2026/27 rates. Until the State Pension starts, the £12,570 personal allowance is free for your pension income — a good time to draw some taxable pension.
• A quarter of each withdrawal is tax-free, up to £268,275 over your lifetime.

A worked example

Say you’re 45 with £150,000 in pensions and £30,000 in ISAs, paying in £800 a month to pensions and £200 a month to ISAs, and you’d like £28,000 a year from 60, to 95, balanced.

By 60 you’d have about £457,000 in pensions and £101,000 in ISAs. The answer is yes: the money lasts to 95, and you could spend up to about £33,500 a year. Your State Pension starts at 68, so the first eight years come entirely from your own savings. As things are, you could stop as early as 58.

Questions people ask

How much do I need to retire at 60?

It depends mostly on what you spend. As a rough guide, each £1,000 a year of spending before the State Pension needs about £8,000 for those eight years, and lasting into your nineties needs far more. Try the How much do I need to retire? calculator for the pot itself.

Can I get my State Pension at 60?

No. State Pension age is 66 rising to 67 by 2028, and 68 for anyone born from 6 April 1978. It can’t be taken early, though it can be put off for a higher amount.

What if markets fall just after I retire?

The answer here assumes steady growth. A fall early in retirement does the most harm, so try Will my money last? to see how often your plan lasts in simulated markets.