Early retirement? This is the most popular age to do it

More than a quarter (26 per cent) of Yorkshire workers who aspire to retire early aim to do so at 60.

With the state pension age currently standing at 66, the findings show one in six (17 per cent) British people who have taken early retirement did so when they were 60, making it the most common age to make an early exit from working life. This rose to 25 per cent among Yorkshire workers.

More than two thirds (68 per cent nationally, rising to 73 per cent in Yorkshire) report an increase in overall happiness as a result of retiring early.

The desire to retire early is primarily driven by “wanting to enjoy more freedom while still being physically fit and well enough to enjoy it”. Nearly one in three people (32 per cent) who have retired early or plan to do so gave this reason for embracing a new lifestyle.

Financial security is the second most common factor prompting people to embrace retirement. More than one in four (26 per cent) early retirees say their decision was a result of “being in a financially stable position” so they can afford not to work.

Other key factors encouraging people to seek early retirement include reassessing their priorities and what’s important to them in life (23 per cent), wishing to spend more time with family (20 per cent) or finding they are either “tired and bored” of working (19 per cent) or find it “too taxing and stressful” (19 per cent).

In terms of the world around them, 44 per cent of early retirees say their family relationships improved and 34 per cent reported improvements in their friendships.

When it comes to their health and well-being, more than half report that early retirement has delivered a boost to their mental well-being (57 per cent) and half (50 per cent) say their physical well-being improved.

However, the findings suggest these benefits come at a cost, with 47 per cent of UK early retirees finding their finances take a hit. This rises to 53 per cent in Yorkshire.

Women are the most likely to have felt a negative financial impact from retiring early (50 per cent versus 44 per cent of men). Across both genders, only 22 per cent felt they have benefitted financially from their decision to retire early.

Aviva said that paying off your mortgage and saving little and often are key stepping stones to a happy early retirement.

Over one in four (27 per cent) cite the reason for returning to work is because they “wanted a new sense of purpose”, making this the most frequent driver.

This was followed by “missing the company and social interactions with colleagues” (26 per cent).

Nearly one in four (24 per cent nationally and 23 per cent in Yorkshire) who return to work after retiring early do so because they experience financial issues.

Alistair McQueen, head of savings & retirement at Aviva, said: “The turbulent times we’re living through have given many people pause for thought to consider their work-life balance and think more seriously about what makes them happy.

“Our findings suggest the dream of an early retirement is very much alive and kicking, but there are many factors to consider along the way and the current uncertainty about the future does not make this an easy decision.

“The experiences of people who’ve already reached early retirement show that small savings habits, which add up over time, are every bit as important as big gestures such as putting aside any year-end bonus.

“It’s also important to learn from the lesson that, while happiness soars in retirement, many people find their finances take the strain when they retire early and money worries are one of the biggest factors resulting in people returning to work. If you aspire to retire early, it’s vital you plan your finances to be sustainable for the long-term. Using tools like Aviva’s Mid-Life MOT app can help people feel in control of their destination and plot a realistic course towards retiring early.”