Can I retire at 65? A UK worked example you can change
Updated 7 October 2026. Figures checked against official sources on 7 October 2026.
There's no compulsory retirement age in the UK, and 65 is no longer the state pension age for anyone retiring today. For most people the state pension now starts at 67, so retiring at 65 leaves about two years to pay for yourself.
The calculator is a worked example: someone aged 58 retiring at 65, with £310,000 in two pensions and cash today. Your money lasts to 95, with £114,285 left.
Worked example
Your money lasts to 95, with £89,865 left.
- Age now
- 58
- Retire at
- 65
- Pots
- £310,000
- Take-home wanted
- £28,000 a year
- Plan until
- 95
The two years before the state pension
State pension age is rising from 66 to 67 between 2026 and 2028. For anyone born after 5 March 1961 it is 67. In this example the 2 years from 65 are paid from: Workplace pension £60,523 (totals in today's money).
How long different pots last if you retire at 65
Each row uses the same assumptions: £26,000 a year take-home in today's money, 80% of the pot in a pension and 20% in an ISA, 5% growth a year before fees, 2.5% inflation, and the full state pension from 67.
| Pots at 65 | Steady growth: money | Lasts to 95 in |
|---|---|---|
| £200,000 | falls short from 77 | 1 out of 100 market tests |
| £300,000 | falls short from 86 | 20 out of 100 market tests |
| £500,000 | lasts to 95 | 74 out of 100 market tests |
The last column tests each pot 500 times, each with a different random mix of good and bad years in the markets, and shows how often the money lasts to 95.
Annuity, drawdown or both
At 65 some people use part of a pension to buy an annuity, a guaranteed income for life, and keep the rest invested. Older policies sometimes come with a guaranteed annuity rate set years ago, often payable from 60 or 65. See guaranteed annuity rates to model one.
What the stress tests show
In this example a 25% market fall in the first year of retirement means the money still lasts to 95. With growth 2 points lower every year it falls short from 89. In 64 out of 100 market tests it lasts to 95.
Working past 65
You can usually work for as long as you want to. Most people stop paying National Insurance once they reach state pension age, even if they keep working. Income tax still applies to earnings and pensions.
Questions people ask
Is there a compulsory retirement age in the UK?
No. The default retirement age of 65 no longer exists, and you can usually work for as long as you want to. An employer can set a retirement age only with a valid reason, such as a legal age limit for the job.
Can I get my state pension at 65?
Not for anyone retiring today. State pension age is between 66 and 68 depending on your date of birth, and 67 for anyone born after 5 March 1961.
Can I retire at 65 with £300k?
In our worked example, a £300,000 pot paying £26,000 a year take-home from 65 falls short from 86 on steady growth, and lasts to 95 in 20 out of 100 market tests. Change the figures in the calculator to see your own.
Is £500k enough to retire at 65?
On the same assumptions a £500,000 pot lasts to 95 on steady growth and lasts to 95 in 74 out of 100 market tests. Whether it's enough depends on what you plan to spend.
Do I pay National Insurance after state pension age?
Most people stop paying National Insurance contributions after reaching state pension age, even if they keep working.
What is a guaranteed annuity rate?
A promise in some older pension policies that each £1,000 of the fund buys a set amount of income for life, whatever annuity rates are when you retire.
Sources
Rates and rules were checked against these on 7 October 2026. Worked-example figures come from the calculator, using 2026/27 tax rules.