Review my retirement age

With more people choosing to work for longer, the timeline for retirement is becoming more flexible. Retirement these days also looks different for each of us. You may want to take a break from work for a few years before finding a new career to pursue. Or, like 52% of people we surveyed*, you may be planning to work at least part time in retirement.

*Fidelity Global Retirement Survey 2019

You might not be sure yet when you’d like to retire but even if your retirement is some way off, it’s worth giving it some thought as your choice will affect your savings and investments. This is particularly important if you are invested in the default option as many plans reduce the risk of underlying investments as you get closer to your retirement age. For example, if you select a retirement age and continue to work for a few more years your investments could potentially be growing more slowly due to taking lower risk. Or if you retire earlier than the age you’ve selected, your pension pot could be invested in higher risk assets.

Working for longer is a way to boost your income in retirement, as having more time to save can make a difference to your pension. Even another 2-3 years would give your savings more time to grow, especially if you continue to contribute to your pension during this time. But remember the value of investments can go down as well as up.

Another reason your retirement age is so important is that it will determine how long your retirement will last. The earlier you retire, the longer your savings will need to last. And the later you retire, the more time you spend earning a salary and potentially boosting your pension savings.

Check your retirement age in PlanViewer to make sure it reflects your current retirement goals and plans. Retirement age is set automatically when you start saving into your pension but you may be able to choose an age that is right for you.

In PlanViewer, go to ‘Actions’ at the top of your home page and select ‘Change my Target Retirement Age’ to tell us the age at which you’re planning to retire.