Published and sources checked · UK tax year 2026/27
Three dates to keep separate
Your last day at work, the date each private pension can pay and your State Pension age are separate dates. You can stop working without immediately drawing every pension, provided other resources meet your costs.
The normal minimum age for most private pensions is 55, increasing to 57 on 6 April 2028. Scheme rules, protected pension ages and ill-health exceptions can change when a particular pension is accessible. At 60, request actual benefit options from each provider instead of relying on a general age rule.
Check the cost of starting a pension earlier
With a defined contribution pension, earlier retirement usually means fewer contributions and more years to fund. Investment growth is uncertain. A defined benefit scheme may reduce the annual pension for taking it before the scheme's normal pension age. Ask for written figures at alternative dates, including any lump sum and survivor benefits.
Compare like with like. An annual pension of £10,000 is a different type of resource from a £100,000 pot. A transfer value is not a cash bonus on top of the promised pension.
Calculate the first stage and the later stage
Confirm your State Pension date and forecast using GOV.UK. Do not assume it starts at 65 or that all people retiring at 60 face an identical gap. Our State Pension age lookup covers a limited birth-date range and links to the official service.
Illustrative, not advice: suppose someone needs £25,000 a year before tax and has £5,000 of other annual income. Their initial gap is £20,000. If their own forecast shows £12,000 a year beginning seven years later, the later gap becomes £8,000 at unchanged prices. Seven years of the initial gap is £140,000 before allowing for tax, returns, charges or inflation. This is a funding calculation, not evidence that a £140,000 pot is enough for retirement.
Test the plan beyond the first few years
Write down what happens if bills rise, a large repair is needed or invested funds fall early on. Include the loss of employer benefits and possible caring commitments. A plan that funds the bridge but leaves too little afterwards has not answered the retirement question.
Compare fully stopping work with different retirement dates or reduced hours. These are scenarios to examine, not recommendations. The income gap calculator can show how changing the date changes the arithmetic, with its simplifying assumptions displayed.
Common questions
Can I receive my State Pension at 60?
Stopping work at 60 does not bring forward State Pension. Your entitlement date depends on your date of birth and the legislation in force.
Must I take every pension when I retire?
No. Different pensions can start at different times, subject to their rules. The tax and income consequences depend on which benefits you take and when.
Sources
Checked 7 October 2026. The linked sources are the authority for rules and eligibility.