Taking on easier work but working for longer has its benefits
Early retirement is the ultimate dream. However, slowing down your approach while taking on a part-time or a more junior role before stepping back could boost your pension by tens of thousands of pounds, new research has shown.
The pay-cut would be more than offset by extra savings – adding as much as £80,000 to your final pot, according to calculations by Interactive Investor, a broker.
A 55-year-old would be better off switching to a lower-paying job and retiring at 66, rather than sticking with their higher salary and leaving work at 62, the broker found.
It calculated that a 55-year-old earning £50,000 with a pension worth £200,000 who retired at 62, would reach age 66 with total pension wealth of £224,763, assuming moderate levels of both investment growth and how much they spent.