Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Could you retire by age 60?

The lifestyle and financial points you need to consider.

Mature couple walking on beach
We all dream of a comfortable and relaxing retirement with chances to travel.

Picture your retirement.

You might see yourself running around after grandkids, experiencing the sights and sounds of exciting new destinations around the world, or you may just be enjoying some well-deserved relaxation.

But whatever you envision, how old do you think you’ll be when it comes to fruition?

According to research instigated by pension specialist Royal London1, 38% of respondents under 35 years old expect to retire by age 60, predicting that just over £1,000 per month will be enough to see them through.

But how realistic is this expectation?

Current Retirement Living Standards

Though it’s true that £1,086 per month (mostly covered by your State Pension) would achieve a minimum standard of living according to current Retirement Living Standards,2 the key word here is “minimum”. This figure would generally not allow you to pursue hobbies and interests, go on holidays, or have any significant disposable income.

This also assumes you have no outstanding debts. For example, if you still have a mortgage, this will continue to eat away a big chunk of your regular outgoings. And if we were to see more interest rate increases – similar to the ones we experienced throughout 2022 – that bite could soon gobble up your retirement income.

The bottom line is that with this minimum income, you could pay your bills, keep yourself fed and watered, and have a little extra in your pocket for special occasions. But when you’ve worked so hard to get to this point, wouldn’t it feel better to relax the purse strings, even just a little and really enjoy your golden years?

Realistic Expectations for Retirement

The idea of retiring at 60 makes sense when we look at older generations.

In Aberdeen (home of SpringGen’s HQ), many young people have seen their parents and grandparents benefit from the boom of the oil and gas industry, where they have been able to retire at 55, receive a sizeable Final Salary Pension, and live off a generous and continuous income that will last them for the rest of their days. The State Pension Age was also lower for previous generations, so retiring by 60 may not have seemed that unrealistic.

However, times have changed. The ever-increasing state pension age and elevated living costs don’t align with millennial and Gen Z hopes to retire by age 60. Instead, if younger generations want to start looking toward a brighter financial future, the time to act is now.

Reviewing your Pension

Individuals in their 20s and 30s should look more closely at how they can begin building their wealth. This can be achieved in small ways, for instance, by taking a closer look at their pension investments.

By this point, having a pension is not the issue, as most UK employees are auto-enrolled onto a plan the minute they start setting up their desk space at a new job. However, take a look at the funds available via your workplace pension scheme and consider moving away from the default ‘Lifestyle Funds’ designed to de-scale in risk the closer you get to retirement. This could reduce your potential growth and is a minor tweak that could lead to more significant returns.

Increasing your workplace pension contribution or setting money aside through an ISA can also be great ways to grow your pension pot. We appreciate that money may be tight right now, especially with many people re-mortgaging their homes or seeing a big jump in their monthly repayments. But even a small addition to your retirement income early on in your career will have a significant impact on the compound interest you earn, so it’s worth considering whether you can sacrifice any spend in other areas.

Is retirement by 60 possible?

In summary, if millennials and Gen Z workers wish to retire by age 60 and are intent on leaving the 9-5 behind as early as possible, there are steps you can take to help make it happen.

The first step is determining your current situation and how that aligns with your retirement aspirations. Our new Money Insights Calculator can give you a rough idea of where you are and where you can get to based on your current circumstances.

Secondly, Retirement Living Standards  is one website that provides fantastic illustrations of what a minimum, moderate and comfortable retirement might look like, giving you a target amount to strive for as you begin to build your wealth.

And the last step? Get started! By planning for your future early, you are giving yourself more time for compound growth, and you would be amazed at how far your money will go when given a longer time frame.

The content is the opinion of SpringGen Advice, part of Acumen Financial Planning and should not be taken as advice. 

SpringGen Advice Limited (FCA no: 928966) is an appointed representative of Acumen Financial Planning (FCA no: 218745), authorised and regulated by the Financial Conduct Authority.