"I'm planning to retire early; I want to be able to stop working by the time I'm 50"

Many people never dream of quitting their jobs before the state pension age

A BFIA investor who is determined to have enough money to retire at age 50 gives advice to others who are aiming for an early retirement.

The very wealthy or those who have made significant investments and savings are typically the ones who retire early.

However, many workers may find it difficult to retire earlier than they had planned due to rising living expenses.

In the UK, the average age at which men and women can retire is 65 and 64, respectively. However, it seems that many people are thinking about becoming financially independent sooner. A survey conducted in April 2025 by Hargreaves Lansdown found that 16 percent of people aspire to retire before turning 60.

BFIA interviewed a reader who explained how he is planning to quit working before turning 50 at the age of thirty.

James Goodwin is increasing his ISA and making additional investments in order to reach his goal. He works for a small telecom company in Leeds.

James says, "I've been investing in my ISA for five years now, and I'm eager to get to the point where I can choose not to work." "I may continue working when I get there, but it all comes down to getting to the point where you have a choice.

James and his 33-year-old wife Huiqiong reside in York, and James says they both try to save as much as they can each month for their investments. He has used his entire 20,000 ISA allowance in some years, but this year he has contributed less to the stocks and shares ISA in order to increase his cash reserve.

They now plan to invest between £10,000 and £20,000 annually.

He claims, "Even when I'm on vacation, I spend a lot of my free time researching our investments." As a value investor, I seek out companies whose share prices are low in relation to their true or intrinsic value.

Financial and hospitality companies are among the UK stocks James is using to expand his portfolio.

Next on his agenda are a few investment trusts. "The plan is to invest for the next fifteen years or so in the hopes that the returns will be sufficient to pay for our living expenses and enable me to retire. I am aware that we will occasionally be unable to save as muchpossibly if children are bornbut we will still make every effort to save what we can.

James, who contributes to his company pension and writes an investment newsletter on his website, firmreturns . com, has decided to put his extra money into an AJ Bell-held ISA so he has no restrictions on when he can take withdrawals.

When he is financially secure enough to retire, he says, "I would like to be a full-time investor and maybe even seed my own fund, which wouldn't feel like work."

James's success in reaching his early retirement goal will largely depend on his choice of investments.

James envisions a "fairly low-key" lifestyle there, where he will read, write, hike, and interact with others. He goes on to say, "My wife would probably add some travelling to that list,".

The couple has had to give up some things in the process. James claims that although they could have afforded a larger home, they decided to live in a "smaller" one in order to save money on housing costs.

Last year, the couple also sold their vehicle. Despite its convenience, they were unable to defend the cost given how much they drove.

Holidays overseas have also been postponed; they now only go overseas to see family, "where the largest cost is the flight tickets," according to James.

By reducing these higher costs, the couple has been able to maintain their small luxury lifestyle, including occasional dining out and moviegoing, without sacrificing their savings.

We go over how to invest in our beginners guide if you want to start.

How much is required for an early retirement?

"The key to early retirement is building up enough money to ensure you have the lifestyle you want to enjoy," says Alistair McQueen, who directs Aviva's retirement and savings division. Even so, each person's number is unique.

Additionally, you must ensure that the funds will last. Even if you retire at age 55, you may still need to save for at least 30 years of retirement.

According to new research by Aviva and Age UK, only half (48 percent) of mid-retirees between the ages of 65 and 75 are certain they are on track to have lifelong savings for their private pension.

A single person now needs 43,900 annually in post-tax spending, or more than 52,000 in gross income, to have a "comfortable" retirement, according to the most recent Retirement Living Standards report from Pensions UK (formerly the Pensions and Lifetime Savings Association, or PLSA).

Fidelity estimates that if a person starts saving at age 25, they will need to save £459 a month by the time they are 65.

If contributions are postponed, the challenge is greatly increased: a 35-year-old would need to save 841 per month, whereas a 45-year-old would need 1,703 per month, which is nearly four times the commitment needed at 25.

According to Ed Monk, associate director at Fidelity International, "A lot of people are increasing their contributions or making plans to retire early in order to improve their retirement prospects. However, intention is insufficient on its own. It's critical that savers know what kind of lifestyle their savings can actually support, given the rising cost of retirement and changing expectations.

Investors can take specific actions to make sure their savings match the lifestyle they desire in later life, regardless of whether they are 10 years away from retirement or making final decisions. The PLSA's updated benchmarks offer a helpful point of reference.

Even if you decide to quit your job, you can always decide to go back to work and resume earning money.

"There was a spike in under-65s quitting their jobs after the pandemic, but many of these have gone back to work because they realized they needed to have a strong daily sense of purpose or to return to work financially," McQueen says.

How to take an early retirement.

Here are some strategies for accumulating wealth that will raise your chances of achieving financial independence sooner rather than later.

Make your first investment.

The earlier you make an investment, the longer your money has to grow.

When you first enter the workforce, you may not consider retirement a top priority, but if you plan ahead, your future self will appreciate it.

Reduce your mortgage balance.

A major factor in determining whether you can afford to quit your job is whether you have a mortgage to pay. A sizable portion of your retirement funds would be used for repayments.

If the remaining amount of your mortgage can be paid off with the 25 percent tax-free lump sum from your pension, you may want to do so. That will not be an option for some time, though, if you retire before you are able to access your pension.

Pensions are maximized.

Pensions provide valuable tax breaks that allow you to increase your retirement savings.

Every pound paid in becomes 1.25 if you are a basic rate taxpayer, and 1.66 if you are a higher rate taxpayer.

Your final pension pot will be larger if you have more money to contribute. Your money will have more time to grow if you invest early. Ask your employer if you can raise your pension payments above the current cap and whether your employer will match them, as this will increase your pension even more.

Even though the age at which you can access your pension funds is 55 (it will rise to 57 in 2028), it is still worthwhile to take advantage of the significant pension tax savings. Do not forget that most people still retire early in their fifties.

Create assets outside of pensions.

Pensions are a very tax-efficient way to accumulate wealth, but you can't access them until you're 55.

You will need non-pension assets, like buy-to-let real estate or ISAs, to sustain your lifestyle until you can access your retirement fund and eventually your state pension if you decide to quit your job earlier.

The current state pension age for men and women is 66, but it will begin to rise gradually once more on May 6, 2026.

Ask for suggestions.

A financial adviser can assist you in creating a plan using cash flow modeling if you need assistance with early retirement planning. With the help of this tool, you can test various scenarios and determine whether you have enough money to reach your retirement.

"Retiring is one of the most important financial decisions you will make and one that should not be rushed," McQueen continues. "Getting help can allow you to consider all the variables at play, including how long you might live, any social care you might need, and any inheritance aspirations you have to leave money for loved ones when you are gone."

On unbiased.com, you can locate an advisor in your region.

Pension Wise is a free, unbiased government service for people over 55 that helps them understand their options for their pension fund.