When you reach the age of 55 you are allowed to begin drawing from your private pension (although this will change to 57 in 2028). For this reason, many people wonder how much they need to contribute in order to retire at 55.
In short, the amount you need to contribute will depend on variables such as the current size of your pension pot and the number of years you have left before you turn 55.
For example, for a single male with a life expectancy of 87, using the TRLS’s figure for a ‘comfortable’ lifestyle, he would need an annual retirement income of £33,600. To retire at age 55 he would need a larger pension pot to achieve this income than if he was to retire at, for example, age 77. Of course, your income in retirement can be made up from a variety of different sources, including the state pension.