Big enough to cope, small enough to care 
Alec Cameron 
Independent Financial Adviser 
You are not alone! 
Click on this text to edit it.Research conducted this May 2022 by Opinium on behalf of Canada Life has revealed that two-fifths of 55-66-year-olds have taken retirement since the start of the pandemic. 
I was shocked when I read this article as these are significant numbers. If you take the estimated population numbers from Statista, in 2020, there are 3.7 million adults aged between 55-59 in England and 3.1 million aged between 60-64. 
 
I am constantly reading stories about the skills shortages in the UK and I hadn’t fully understood the significance of earlier retirees and how they were driving these numbers up. 
On further reading, the numbers do change, as you see the impact of those who have fully retired which makes up 35% of the total in comparison with, 1 in 10 who have taken semi-retirement and a further 1 in 6 who have reduced their hours but not retired. 
 
I think the more interesting figures are in the reasons why they are stepping out of the workforce or reducing the hours they spend at work with 21% stating it’s not worth the stress and a further 23% looking for a better work-life balance. Other reasons given were: 
The impact the job was having on their mental health (13%) A change of lifestyle (15%) Wanting to spend more time with family and friends (18%) Financially having the ability to leave work early (19%) and ill health or long-term health conditions (19%) 
 
I think lockdown and working from home for some people had a significant impact on how they wanted to live going forward, I have spent much of my career working from home and so the pandemic didn’t affect me as it did so many of my peers. 
 
Financially, this seems to have been afforded with a number of solutions, including inheritance, drawings from savings and investments, but more concerning is the accessing of the lump sums as people get to the age of 55, this will of course have a significant impact on a reduced pension pot. 
 
I think it will be interesting to watch if those who have taken early retirement will come back into the workplace, later on, having made a decision post the pandemic, only time will tell. 
 
If you are thinking of taking early retirement, always have a discussion with your IFA first to explore what your options are before making a final decision. 
 
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