Can You Retire at 70 in the UK?
Retiring at 70 is achievable for many people, especially as you will be at or near State Pension age.
How Much Do You Need to Retire at 70?
The amount you need depends on your desired lifestyle. The Pensions and Lifetime Savings Association (PLSA) defines three retirement living standards:
- Minimum: £14,400 per year (single) — covers essentials plus a UK holiday and basic leisure
- Moderate: £31,300 per year (single) — includes European holidays, car, and more flexibility
- Comfortable: £43,100 per year (single) — regular holidays, new car, home improvements
Can You Access Your Pension at 70?
Yes. You can currently access defined contribution pensions from age 55 (rising to 57 from April 2028). You can take up to 25% as a tax-free lump sum, with the remainder available through drawdown, annuity, or cash withdrawals.
Tax Implications of Retiring at 70
When you access your pension, 25% is tax-free. The remaining 75% is taxed as income. If you take large lump sums, you could be pushed into a higher tax bracket. Spreading withdrawals across tax years is usually more efficient.
Making Your Pension Last
Retiring at 70 means your savings could need to last 20+ years. Key strategies include:
- Withdraw no more than 3.5-4% per year from drawdown
- Keep 2 years of expenses in cash to avoid selling investments during downturns
- Maintain a diversified investment portfolio even in retirement
- Review your withdrawal rate annually and adjust as needed
- Consider a partial annuity for guaranteed baseline income