Retire at 62 – How to Make It Happen in the UK
If you’ve dreamed of stopping work at 62, you’re not alone. It feels doable, but only if you know the exact numbers you need and the tools that can get you there. Below you’ll find simple, no‑fluff advice that turns “maybe someday” into a plan you can start right now.
Check Your Numbers First
Grab a calculator and add up every source of income you expect after 62 – state pension, workplace pension, any private savings, and potential equity release. In the UK the state pension usually starts at 66, so you’ll need to cover the gap yourself. A good rule of thumb is to aim for at least 70‑80% of your current pre‑tax earnings as annual retirement income. Once you have a target figure, work backwards: how much do you need to save each month, and what return must your investments earn? Use a free retirement calculator to see if a 4% withdrawal rate will keep your pot alive for 20‑30 years.
Boost Income Without Burning Out
Many people think early retirement means quitting work completely, but a part‑time side gig or consulting work can bridge the gap and protect your savings. Look for low‑stress options that match your skills – freelance writing, tutoring, or even renting out a spare room. If you have a mortgage, consider downsizing or using a lifetime mortgage (equity release) to free up cash. Just remember that equity release adds interest that compounds, so compare plans and keep the loan-to-value ratio under 40% to stay safe.
Credit cards can also play a role, but only if you use them responsibly. A card with a 0% intro period on purchases can give you a short‑term cash boost for big expenses, letting you keep investments untouched. Pay the balance before the rate jumps, and avoid high‑interest cards that eat into your retirement fund.
Don’t overlook government schemes like the Pension Credit, which can add extra money if your saved income falls below a certain level. Check eligibility each year – the thresholds change, and a small increase can mean a few extra hundred pounds a month.
Plan Lifestyle and Health Costs Early
Health expenses rise as you age, so build a health buffer into your budget. A modest health savings account or a flexible ISA can cover GP visits, prescriptions, and occasional trips to specialists. Also, think about where you’ll live. Smaller towns often have lower living costs, and moving closer to family can cut transport bills and give you informal support.
Finally, set a review date every six months. Your savings, interest rates, and personal circumstances will shift, and a quick tweak can keep you on track for that 62‑year finish line. With numbers clear, income boosted, and costs managed, retiring at 62 moves from wishful thinking to a realistic goal.
