Since 2015, those over the age of 55 have had more flexibility about how they access some of their pension savings. You can now decide how much income you need and can easily change the amount. So, more people are considering a phased retirement, where they move into part-time work.
Retirement priorities
In a survey1 of adults aged 50 to 70, 30% of respondents wanted the certainty of a guaranteed income in retirement. Meanwhile 28% wanted to keep their pension invested so it could potentially grow and 33% wanted a mix of the two.
Stay flexible
It is now possible to mix and match. For example, if you retire gradually, you could start off by taking a smaller regular income from your pension, to top up your part-time earnings. The rest of your pot will stay invested and have the potential to keep growing. As the article ‘Avoiding the unretirement tax trap’ shows, you need to be mindful of the tax implications.
1Vanguard, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.