PEOPLE planning to retire early this year will suffer an annual hit of over £3,000, according to new research from pensions provider Prudential.
The study showed that the average income of early retirees is £18,567 compared to £21,961 for those that work until the usual retirement date.
Nevertheless, Prudential found that 60 per cent of those stopping work this year are doing so before their expected state pension age or company pension retirement date.
The average age of those retiring early is 57 with over a third planning to fill their time with a hobby while 17 per cent are planning a long-term holiday or gap year.
“It’s encouraging to see that so many of this year’s retirees are in a comfortable enough financial position to enable them to retire early,” said Vince Smith-Hughes, retirement expert at Prudential.
“People stopping work early are not planning to put their feet up. They want to keep busy and active by taking up hobbies, sports, charity work and some are even planning a post-work gap year.
“These are fantastic ways to spend your retirement but can be expensive and, with everyone living longer than ever before, it is vital to ensure you can fund your whole retirement.”
On a regional basis, the East Midlands is the early retirement capital of the UK with 72 per cent of its retirees retiring early, closely followed by Wales with 69 per cent.
Over half of those retiring early, 56 per cent, saying they feel financially well prepared for retirement.
“Seeking guidance from the government’s free and impartial Pension Wise service or advice from a professional adviser can help people identify the best course of action to achieve their specific financial retirement goals at any stage in their working life,” said Smith-Hughes.