60 is most popular age for taking early retirement

Sixty is the most popular age to retire early, with one in four (25 per cent) savers planning to celebrate this milestone by leaving work behind, according to research from Aviva.

The most common driver for early retirement, cited by 32 per cent of respondents, was to embrace a new lifestyle and to have more freedom whilst still being physically fit and well enough to enjoy it.

A further 26 per cent hoped to retire early as a result of “being in a financially stable position” and being able to afford not to work, with 20 per cent of those targeting early retirement aiming to make a transition from working life at age 55.

However, whilst more than two-thirds (68 per cent) of respondents reported an increase in their overall happiness as a result of retiring early, 47 per cent of retirees found their finances had taken a hit, with 24 per cent of those who return to work doing so because they experienced financial issues.

Women were especially likely to feel the negative financial impact of retiring early, with 50 per cent feeling a financial strain compared to 44 per cent of men, although only 22 per cent of savers across both genders felt they benefitted financially from their decision to retire early.

Despite recent concerns over a lack of understanding of DB pensions, Aviva's survey found that almost one in three (32 per cent) savers identified having a DB pension as being the main measure in enabling them to retire early.

Considering this, Aviva warned that the concept of early retirement may get harder for younger generations to achieve, with the majority of the private sector workforce now saving into defined contribution pension schemes.

However, the insurer stressed that there were steps younger savers can take, with 30 per cent of respondents identifying paying off their mortgage as a key stepping stone to retiring early, while 29 per cent attributed this to saving little and often.