Covid-19 sees a surge in early retirement
The number of people taking early retirement has risen by more than ever before, says the ONS – in part because of problems in the labour market caused by Covid-19.

The number of people retiring before the age of 65 rose by more than 55,000 as the UK went into lockdown, official data reveals, suggesting that Covid-19 may be driving an increase in early retirement.
The Office for National Statistics (ONS) said that in the March to May period of this year, the number of under-65s describing themselves as “retired” was 55,311 up on November 2019 to January 2020.
The increase is the largest jump in the numbers the ONS has ever recorded. According to pension experts, the likelihood is that some savers would have left their occupations early in any case.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But many people may have been forced into early retirement unexpectedly because of problems in the labour market caused by Covid-19.
For example, older workers losing their jobs may have decided it was unlikely they would find a new role. For those planning for early retirement, the change of lifestyle may have been very welcome.
But retiring early can prove expensive, reducing the amount of time for savings to grow and requiring people to fund pension income for longer.
Research published by Prudential has suggested that people quitting the work force early face an average reduction in their annual retirement income of £3,400.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.
-
What will the unravelling of US-China trade mean for the economy?
What will a US-China decoupling mean for the global economy?
-
Scottish Mortgage: why we’re turning to private companies and China for exceptional returns
When it comes to delivering growth, Scottish Mortgage will stop at no end in its hunt for exceptional long-term returns - this includes China, unicorn companies and sectors such as space exploration
-
Flex first, fix later: a hybrid retirement strategy to consider
You needn’t choose between income drawdown and an annuity in retirement. What is a “flex first, fix later” approach?
-
A new wealth tax is a terrible idea. The rich are already being hit by sneaky taxes – Merryn Somerset Webb
Opinion Ideologues want to squeeze more tax out of the rich with a wealth tax. They’re already wrung dry, says Merryn Somerset Webb
-
Has your pension plunged in stock market turmoil? How to avoid creating real shortfalls
Sliding stock markets are no reason to sell out of your pension in a panic, says David Prosser
-
Pensions revolution: how to profit from the trends shaping the UK pension system
The UK pension system is one of the biggest in the world. Big changes are under way, says Rupert Hargreaves
-
What MoneyWeek writers read and watched in 2024
Here's a roundup of MoneyWeek's favourite books, films and TV shows in 2024
-
Parents face £1,000 'nanny tax' – how to afford it
Hiring a nanny is about to become even more of an expensive hassle for families, especially those in London. Here's how to cut costs
-
Is it cheaper to be a sole trader?
It might be cheaper to be a sole trader due to changes to the tax system
-
Should you switch your pension fund?
Many pension fund options are poor performers, thanks partly to high charges. Is it worth switching?