Ryan FowlerAccording to a survey conducted by Just Group, about two-thirds of individuals over 55 have retired before reaching the State Pension Age, which is currently set at 66. The Countdown to Retirement survey, which involved 1,050 retired over 55s, found that 62% left the workforce before receiving their State Pension.
The study also revealed that over a third (34%) of those who retired early had withdrawn funds from their pension between the age of 55 and ending full-time employment. This indicates a prevalent use of pension funds by many who have yet to completely retire.
Concerns have been raised about the sustainability of these early withdrawals. Data from the FCA’s Retirement Income market update shows that 40% of income drawdown plans are being depleted at an annual rate of 8% or more, with another 13% of plans witnessing regular withdrawals between 6% and 7.99%.
Stephen Lowe, group communications director at Just Group, highlighted the financial implications of retiring early: “The majority of people are retiring before they reach State Pension Age, putting extra pressure on their retirement finances because they must bridge the income gap between stopping work and starting to receive the State Pension.”
