Start with your spending
Start with what you expect to spend each year once you stop work, in today’s money. Your savings only answer the question once you know what they need to pay for.
Some costs stop when you retire, such as travel to work. Others can start or grow, such as holidays or help at home. A mortgage or other debt still running at 60 needs paying from somewhere.
When you can take your pensions
You can usually take money from a defined contribution pension from the normal minimum pension age. It is 55 now and rises to 57 from 6 April 2028. At 60 you are above both, so this rule on its own doesn’t stop you.
A defined benefit pension has a pension age set by its scheme. Ask the scheme what it would pay if you took it at 60.
You can normally take some of your pension as tax-free cash. Across all your pensions, the tax-free cash you can normally take is capped at £268,275. The rest is taxed as income when you take it.
The years before your State Pension
If you are 60 now, your State Pension age is 67. That leaves 7 years to pay for from your own pensions and savings before it starts. State Pension age depends on your date of birth.
The full new State Pension is £12,547.60 a year in the 2026/27 tax year. What you get depends on your National Insurance record, so check your own forecast.
How long your money needs to last
A Wealthcast plan runs to 100 unless you choose an earlier age. Retiring at 60, that is 40 years your money may need to cover.
Growth matters over that many years. A Wealthcast plan starts from Balanced growth of 2.5% a year above inflation, after charges. On Pro, you can change it to suit how you invest.
To see how long one pension pot lasts if you take the same amount each year, use the pension drawdown calculator.
Other money that can help
ISAs, cash savings, a partner’s income or pensions, rental income and part-time work can all cover part of the years before your State Pension starts.
The order you draw on them can change how much tax you pay, and how long each one lasts.
Work out your own answer
No rule of thumb can tell you whether you can afford to retire at 60. The answer depends on your own numbers.
Wealthcast models your pensions, savings, spending, the State Pension and UK tax year by year. You can see whether your money lasts, and what changes if you retire earlier or later.
Start free, or explore the live demo first.
Wealthcast is an illustrative cashflow modelling tool, not regulated financial advice. Projections use simplified assumptions and default to today's money. Your actual outcomes will vary. Read the full disclaimer.
Decisions about pensions, gifting or inheritance tax can be hard to undo. Free, impartial guidance is available from MoneyHelper, and a regulated financial adviser can give advice that is personal to you.