The truth is that most people, do not know the true answer to this question: when can I retire? At some point, I would have been included in this number. The reason people do not know the honest answer to the question is because all the advice out there is connected to when you can receive the state pension.

People are often told or they tell themselves that they will be 75 by the time they can retire, or that they will never be able to retire. With tough economic circumstances such as high house prices and low-interest rates, it’s commonplace for someone to ask, how can anyone afford to retire?

Times have changed and you can no longer rely on the state or your employer to support you when you stop working. However, a lot of the financial information out there is still centred around the traditional retirement age. This distorts the reality and the truth that retirement is completely in your capable hands.

When Can I Retire If the State Pension Age Increases?

Successive UK governments have increased the age at which the state pension can be accessed. It won’t be long before being able to retire as 60, or 65 will be a distant memory for some. For the people who continue to factor in the state pension as a core part of retirement income, a retirement age of 75 may be more accurate.

The current retirement age for men and women is now 65. If you were born in the 1950s then this would have increased from 60 to 65 over the last 10 years. Very unlucky for some. The state pension age is scheduled to rise to 67 between 2026 and 2028 and 68 by 2037 and 2039.

This, of course, depends on your date of birth, but miss the cut-off and you could be in for a sudden shock. For others, like myself, the state pension is slowly edging away into the distance. The truth is, that if you want to retire at a reasonable age, you have to take matters into your own hands.

What is the age when a person should ideally retire?

You may not want to retire in the traditional sense and may want to continue working. However, the economy will continue to follow a boom and bust cycle and you cannot always rely on your employer to fund your lifestyle and basic needs. You also never know when they might make you redundant.

Creating a source of passive income is vital not just in funding your retirement but in being able to spend more time with family and having the choice to spend your life as you choose. It also helps in emergency situations such as a sudden illness or not being able to work for whatever reason. This is why financial independence, and not having to trade your time for money is an important goal, no matter what age you ideally would like to retire.

How can anyone afford to retire?

You may be wondering how people will be able to retire without the state pension. Many people live pay-check to pay-check, with unexpected costs hitting them when they least expect it.

The cost of living can seem so high at times, train fares are continuously breaking record levels and house prices are extortionate. There was a time when you could use the ‘safe option’ of property to form a passive income. You may have missed the boat on this and are now being charged rent to fund someone else’s retirement plans.

Even if you do have money, you may be unsure where to save your hard-earned cash.

On top of this, you may have an understanding of pensions, retirement plans and the stock market but this can also lead to questions such as; what if the stock market crashes again?

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Why you can retire earlier than you think?

There was a time when I found the idea of working until I was 70 very depressing. Feeling like I didn’t have the option or the freedom to pursue my passions because I was trapped by the 9-5 and the government telling me when I could retire.

This was until I began researching where to invest my money, and discovered the notion of becoming financially independent through passive income. I found others out there, mainly in the US that through this method have retired at ages as low as 31. Since retiring they have actually increased their net worth.

My Personal Finances And When I Can Retire?

Over the past 6 years since I left university, I’ve been saving and investing a healthy part of my pay-check into the stock market. The maths and historical averages of the stock market dictate that I will now be able to retire significantly earlier than the traditional retirement age.

These numbers and my previous earnings have all been based around an average UK income of around £27,000. Therefore, it’s manageable for a high proportion of people in the UK to create a passive income that way surpasses the state pension.

As this is a long term plan, I thought I would break this up by travelling though Vietnam, Malaysia and Indonesia, then live and work in Australia for the next year. There were a number of reasons for this that might resonate with you. The way I have been saving has already given me the freedom to take the risk of leaving my 9-5. It has also provided a solid financial foundation at a time when I may have quit my job just before the worst recession since 1929.

What needs to happen before I can retire?

You will need to find a way to create a sustainable and consistent passive income. A common way to do this is to invest in the stock market, although you should speak to a qualified financial advisor if you don’t feel comfortable managing this yourself like I am doing. However, simply put, you can:

• Create a passive income to cover your expenditure
• Reach a level of wealth that allows you to withdraw without depleting your funds
• Have an income that potentially allows you to spend more in retirement than working
• Invest in a way that permits you to do all of the above, without taking extreme risks on dubious financial products.

You do not need to:

• Give me a penny of your money
• Pay extortionate fees to anyone
• Have to settle for having a third of your income as in traditional retirement
• Incorporate the state pension into your financial planning
• Wait for your work-place pension to payout
• Retire and take a high risk that you will run out of money

5 Steps To Creating A Passive Income For Retirement

For you to do this, I have created a simple 5 step guide which you can download, for absolutely free. This will take less than 5 minutes to read and as little as 30 minutes to implement. Click here to download this now. This will tell you:

1. What is passive income and financial independence?
2. What are some examples of passive income?
3. How much money do you need to retire?
4. What is the simple path to wealth?
5. How do I start investing in passive income?

If you download this guide, you will be able to implement financial freedom at a much lower age, you will have more money in retirement. If not then you may end up in a stressful position of not knowing how much money you will have in retirement and when you will be able to access it.

For this small amount of time up-front, you can change you could potentially end up a millionaire at 55.