When is the Right Time to Retire?

When should you retire? Whilst millions of us might2024 and 2026. With an aging population and an
dream about that magical day when we give upenormous budget deficit, some commentators have
work forever, it is a serious question that dependseven suggested that the state retirement age may
on a number of issues.even be raised to 70 in decades to come.
The new government has introduced a raft ofWhat about private pensions? The previous
measures that will affect your decision.government changed the age at which savers could
Firstly, with the default retirement age about to beaccess their pension benefits from 50 to 55. This was
abolished, the decision to retire will be in your ownpresumably in the hope that people would not spend
hands, rather than your employer's. As long as youall of their money too early and rely on the state in
are still able to work, there is no reason why youolder age. So if you are planning to retire in the
should not continue as long as you like. RecentUnited Kingdom, 55 will be a significant milestone for
research from Aviva has shown that many olderyou.
workers will opt for a middle way. NicknamedIf you are planning to retire abroad, your retirement
"part-tirement", part time working is set to become aage will depend on whether you are planning to leave
growing trend among older workers.your pension fund in the UK. If so, you will be bound
Relying on the state pension alone is not advisable. Inby the 55 age limit. If on the other hand you transfer
any event it is going to become payable later andyour pension into a QROPS (Qualifying Recognised
later in life. Yesterday the coalition governmentOverseas Pension Scheme), the age will depend on
announced via the Queen's speech that the statethe regulations of your QROPS country.
retirement age was going to rise to 66 between