How to Retire Early in the UK: Key Things to Think About

Thinking about retiring early usually starts with a simple question: what would it take to make it possible?

For many people, the appeal comes from having more time. Time with family. Time to travel. Time to enjoy hobbies that work often gets in the way of.

Before making any decisions, it’s helpful to look at your current finances, future spending and the options that might support your plans later in life.

Key’s guide brings together useful information about how to retire early in the UK and outlines several financial considerations people often explore when planning ahead, including:

• Downsizing your property
• Making the most of your pension
• Equity release

Can I retire early?

Successful early retirement planning starts with having a clear view of your finances. This helps you understand whether you’re in a position to retire early and what changes you may need to consider.

For example, you may want to go through:

Your pension pot: The higher the amount in your pension pot, the more options you're likely to have when it comes to retiring early.

Your preferred lifestyle: Speak with your family about where and how you’d want to live in retirement. For some people, that might mean a cottage by the sea. Others may prefer a rural setting or a larger home with more space.

Mortgage and debts: Review your mortgage and any other debts. Lower balances may reduce your outgoings to enjoy more freedom in retirement. Paying down or clearing them could make day-to-day costs easier to manage later on.

Income sources: You may also have income outside of work, such as savings or part-time earnings. These can help support early retirement plans.

When creating a plan for how to retire early in the UK, inflation is sometimes overlooked. Try to factor rising prices into your calculations so you have a more realistic view of future costs.
 

How much should I save for early retirement?

When planning how to retire early in the UK, it can help to start with a rough benchmark. The Retirement Living Standards give an idea of what different lifestyles might cost in retirement:

• Minimum: Covers essential needs with a little left for extras
• Moderate: Offers more flexibility and comfort
• Comfortable: Allows for more freedom and regular luxuries

These figures are guides, not targets. Your own number will depend on your lifestyle, housing costs and long-term plans. Many people use a mix of pensions, savings, ISAs and other assets to help support early retirement.

You can read more about the standards in the UK Government’s 2025 pension income analysis.
 

Tips for early retirement planning

Here are some general tips people often consider when building a plan for how to retire early. Taking small, steady steps over time can help create a more stress-free retirement.

• Reduce Debt: Looking at ways to lower existing borrowing, including your mortgage, can make day-to-day costs easier to manage in retirement.
• Downsizing: Moving to a smaller property may help reduce long-term expenses and, for some people, free up funds to use in later life.
• Review your pension: As you approach retirement, it can help to understand what your pension may provide and what benefits you’re entitled to. A regulated pensions adviser can give guidance based on your personal circumstances.
• Plan for healthcare: Think about possible health costs in later life. Speaking with a healthcare professional can help you understand what support you may need.
• Top up savings where possible: Adding to savings before retiring early can offer extra flexibility. A financial planner can help explain general options, if needed.

Using equity release to support early retirement

Equity release is one option some people explore when planning how to retire early. Especially if they need extra financial flexibility in later life. By unlocking tax-free funds from your home, it can help support early retirement plans alongside your pension, savings or other assets.

The money released can be used in many ways, including:

• Repaying an existing mortgage
• Supporting loved ones
• Making home improvements
• Covering essential costs
• Boosting retirement finances

Equity release isn’t right for everyone, so it’s important to understand how it works within your overall early-retirement planning. It’s just one of several options, and the right choice will depend on your personal circumstances.

Speaking to an equity release adviser with Key can help you understand the benefits, risks and whether it may be suitable for you.

It’s always free to explore your options with Key. Our fixed advice fee of £1,699 is only payable on completion.

Be financially aware
Lifetime mortgages are secured loans. Compound interest means the amount you owe can grow quickly. Equity release reduces your estate's value and may impact means-tested benefits. It may leave little or no property equity, reducing future financial options.

Early Retirement Planning - FAQs

What is the fastest way to retire early?

There isn’t one single fastest way to retire early. Everyone’s situation is different.

Many people start by looking at their day-to-day spending. Some also try to reduce any borrowing and check what their pension and savings might provide. Small changes like this can help you see what feels realistic.

Because everyone’s situation is different, a regulated financial adviser can explain the options that may fit your circumstances.
 

How much do I need to retire at 55 in the UK?

There’s no fixed amount. What you need will depend on your lifestyle, housing costs and how long your money must last.

The Retirement Living Standards give rough guides. For a single person, they range from £13,400 to £43,900 a year. These figures are planning tools, not targets.

Retiring at 55 also means covering several years before the State Pension starts. A financial adviser can help you understand what may work for your situation.
 

Can I retire at 60 with 300k in the UK?

It may be possible for some people, but it depends on your lifestyle, spending and housing costs. £300k will also stretch differently depending on when your State Pension starts.

You’ll need to think about how long your money must last and whether you have other savings or income to support you.

Because every situation is personal, a regulated financial adviser can help you understand what may be realistic for you.